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  "docSlug": "d4c64e242528",
  "documentTitle": "Apple Inc. (AAPL)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2013-02-21 00:00:00",
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  "pageNumber": 37,
  "pageCount": 55,
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  "density": "dense",
  "nDataPoints": 12,
  "notes": "The slide uses a simple arithmetic bridge to demonstrate the dilution effect of the proposed iPref dividend on common equity value.",
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      "kind": "callout",
      "text": "If you apply a constant P/E multiple on the new Apple earnings, Apple common stock would have a new price of $430 per share versus the current $450 per share.",
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      "kind": "list",
      "text": "iPref dividends reduce Apple net income and EPS available to the common stock. Constant P/E multiple x Adjusted EPS = Estimated price of Apple common stock after Apple distributes iPrefs",
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      "text": "New Apple price per share: $430",
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      "kind": "paragraph",
      "text": "Once the iPrefs are distributed for free to existing shareholders, they have an on-going dividend which Apple must pay out. In the example of a $47 billion iPref distribution, the annual dividend payment by Apple is about $1.9 billion. Of course iPref dividends reduce the income available to the common shareholders. As a result, consensus estimates that Apple will earn about $45 per share would be reduced by $2 per share to take into account the iPref's dividends. This means Apple would now earn about $43 per share. If you apply a constant P/E multiple on the new Apple earnings, Apple common stock would have a new price of $430 per share versus the current $450 per share. That's a reduction of $20 dollars in the price of the existing Apple common equity.",
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      "kind": "table",
      "text": "Apple net income 42.5 $45; Less: iPref dividends (1.9) ($2); Pro forma net income 40.6 $43; Constant P/E multiple 10.0x; New Apple price per share $430; Current price per share $450; Change in price per share ($20)",
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      "kind": "title",
      "text": "iPrefs Impact the Common Stock",
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      "objective": "Why should Apple adopt iPrefs?",
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