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  "documentTitle": "Bear Stearns | Investment Banking Pitch Book | 36 slides",
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  "authorName": "Bear Stearns",
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  "presentationDate": "2005-01-01 00:00:00",
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  "notes": "Part of a DCF Primer deck.",
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      "kind": "disclaimer",
      "text": "(1) Treat out-of-the-money convertible preferred as straight preferred with no common equity component...",
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      "kind": "list",
      "text": "The value of all outstanding options and warrants should be included in the calculation of WACC. Value is calculated by assuming all exercisable in-the-money options are exercised and proceeds are used to retire common stock.",
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      "text": "The cost of non-convertible preferred stock can be estimated by the dividend yield and the value can be estimated by market value. For non-traded preferred stock, the value may be estimated by the liquidation or redemption value. Convertible preferred can be treated as common equity if in-the-money.",
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      "text": "Minority interests should be valued based on the market value of the subsidiary if the subsidiary is public. For non-traded, use comparable companies analysis. The discount rate should be the WACC of the company in which the interest is held.",
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      "kind": "paragraph",
      "text": "A company's WACC should include the after-tax cost of all other non-common equity sources of capital.",
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      "kind": "title",
      "text": "Calculating the Cost of Other Non-Equity Capital",
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