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  "documentTitle": "Sino-Forest Corporation (TRE)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2011-06-02 00:00:00",
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      "kind": "paragraph",
      "text": "Dr. Marsden calculates the real pre-corporate tax WACC range of between 7.1% to 12.8%. Poyry then selected the current 8.5% to 9.0% discount rates in New Zeeland and adds a 2.5% to 3.0% resulting in a discount rate of 11.5%, providing for the 2006 pre-tax cash flow valuation of TRE’s assets at $2,297.5 million USD as of December 31, 2010.",
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      "kind": "paragraph",
      "text": "increment to the cost of capital for the forest if investors' property rights are not clearly defined. Where control is not obtained a minority discount and / or illiquidity discount many apply.",
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      "text": "It begs the question; if evidence of systemic and comprehensive fraud and illegal activity is discovered in the Company from inception, throughout its operating history, and into the present, by how much would the discount rate need to be adjusted?",
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      "kind": "paragraph",
      "text": "If significant corporate governance and agency cost issues between insides and outside investors arise (e.g. from lack of transparency, possible risk of expropriation of assets, restrictions of remittance of profits, or exchange rate control), the use of cost of capital at the upper end of our range may be warranted.",
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      "kind": "source-note",
      "text": "63 2009 Poyry, P. 4, 5\n64 2009 Poyry, p. vi; 58; 2009 Poyry Report Appendix: Uniservices, Investment Appraisal for Forest Investment in China, 5 Jan 2010. P. 23.\n65 2009 Poyry Report Appendix: Uniservices, Investment Appraisal for Forest Investment in China, 5 Jan 2010. P. 23",
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