Net Present Value Analyses. Piper Sandler performed an analysis that estimated the net present value per share of William Penn common stock assuming William Penn performed in accordance with internal financial projections for William Penn for the years ending December 31, 2024 through December 31, 2027 with a long-term annual balance sheet and net income growth rate for the years thereafter and estimated dividends per share for William Penn for the years ending December 31, 2024 through December 31, 2028, as provided by the senior management of William Penn. To approximate the terminal value of a share of William Penn common stock at December 31, 2028, Piper Sandler applied price to 2028 earnings multiples ranging from 8.5x to 13.5x and multiples of 2028 tangible book value ranging from 60% to 110%. The terminal values were then discounted to present values using different discount rates ranging from 10.0% to 14.0%, which were chosen to reflect different assumptions regarding required rates of return of holders or prospective buyers of William Penn common stock. As illustrated in the following tables, the analysis indicated an imputed range of values per share of William Penn common stock of $3.02 to $5.29 when applying multiples of earnings and $6.04 to $12.50 when applying multiples of tangible book value. Earnings Per Share Multiples Discount Rate 8.5x 9.5x 10.5x 11.5x 12.5x 13.5x 10.0%............................................... $3.49 $3.85 $4.21 $4.57 $4.93 $5.29 11.0%............................................... $3.36 $3.71 $4.06 $4.40 $4.75 $5.10 12.0%............................................... $3.24 $3.58 $3.91 $4.24 $4.58 $4.91 13.0%............................................... $3.13 $3.45 $3.77 $4.09 $4.42 $4.74 14.0%............................................... $3.02 $3.33 $3.64 $3.95 $4.26 $4.57 Tangible Book Value Per Share Multiples Discount Rate 60% 70% 80% 90% 100% 110% 10.0%............................................ $7.00 $8.10 $9.20 $10.30 $11.40 $12.50 11.0%............................................ $6.74 $7.80 $8.86 $ 9.92 $10.97 $12.03 12.0%............................................ $6.50 $7.51 $8.53 $ 9.55 $10.57 $11.59 13.0%............................................ $6.26 $7.24 $8.22 $ 9.20 $10.18 $11.16 14.0%............................................ $6.04 $6.98 $7.93 $ 8.87 $ 9.82 $10.76 Piper Sandler also considered and discussed with William Penn’s board of directors how this analysis would be affected by changes in the underlying assumptions, including variations with respect to earnings. To illustrate this impact, Piper Sandler performed a similar analysis, assuming William Penn’s earnings varied from 20.0% above projections to 20.0% below projections. This analysis resulted in the following range of per share values for William Penn’s common stock, applying the price to 2028 earnings multiples range of 8.5x to 13.5x referred to above and a discount rate of 11.37%. Earnings Per Share Multiples Annual Projection Variance 8.5x 9.5x 10.5x 11.5x 12.5x 13.5x (20.0%) ............................................. $2.74 $3.01 $3.28 $3.56 $3.83 $4.10 (10.0%) ............................................. $3.03 $3.34 $3.64 $3.95 $4.26 $4.57 0.0%................................................ $3.32 $3.66 $4.00 $4.34 $4.69 $5.03 10.0%............................................... $3.61 $3.98 $4.36 $4.74 $5.11 $5.49 20.0%............................................... $3.90 $4.31 $4.72 $5.13 $5.54 $5.95 67
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