Piper Sandler also performed an analysis that estimated the net present value per share of Mid Penn common stock, assuming Mid Penn performed in accordance with publicly available median analyst earnings per share estimates for Mid Penn for the years ending December 31, 2024 through December 31, 2026 as well as an estimated long-term annual earnings per share growth rate for the years thereafter and estimated dividends per share for Mid Penn for the years ending December 31, 2024 through December 31, 2028, as provided by the senior management of Mid Penn. To approximate the terminal value of a share of Mid Penn common stock at December 31, 2028, Piper Sandler applied the price to 2028 earnings multiples ranging from 8.0x to 18.0x and multiples of 2028 tangible book value ranging from 100% to 150%. The terminal values were then discounted to present values using different discount rates ranging from 9.0% to 13.0%, which were chosen to reflect different assumptions regarding required rates of return of holders or prospective buyers of Mid Penn common stock. As illustrated in the following tables, the analysis indicated an imputed range of values per share of Mid Penn common stock of $19.83 to $48.19 when applying multiples of earnings and $24.91 to $41.90 when applying multiples of tangible book value. Earnings Per Share Multiples Discount Rate 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x 9.0%.......................................... $22.93 $27.98 $33.03 $38.08 $43.14 $48.19 10.0%......................................... $22.10 $26.96 $31.82 $36.68 $41.54 $46.40 11.0%......................................... $21.31 $25.98 $30.66 $35.34 $40.01 $44.69 12.0%......................................... $20.55 $25.05 $29.56 $34.06 $38.56 $43.06 13.0%......................................... $19.83 $24.17 $28.50 $32.83 $37.17 $41.50 Tangible Book Value Per Share Multiples Discount Rate 100% 110% 120% 130% 140% 150% 9.0%.......................................... $28.85 $31.46 $34.07 $36.68 $39.29 $41.90 10.0%......................................... $27.79 $30.30 $32.81 $35.33 $37.84 $40.35 11.0%......................................... $26.78 $29.20 $31.62 $34.04 $36.45 $38.87 12.0%......................................... $25.82 $28.15 $30.48 $32.80 $35.13 $37.46 13.0%......................................... $24.91 $27.15 $29.39 $31.63 $33.87 $36.11 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 Mid Penn’s earnings varied from 20.0% above estimates to 20.0% below estimates. This analysis resulted in the following range of per share values for Mid Penn common stock, applying the price to 2028 earnings multiples range of 8.0x to 18.0x referred to above and a discount rate of 11.37%. Earnings Per Share Multiples Annual Estimate Variance 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x (20.0%) ....................................... $17.34 $21.03 $24.71 $28.40 $32.09 $35.78 (10.0%) ....................................... $19.18 $23.33 $27.48 $31.63 $35.78 $39.93 0.0%.......................................... $21.03 $25.64 $30.25 $34.86 $39.47 $44.08 10.0%......................................... $22.87 $27.94 $33.01 $38.08 $43.15 $48.22 20.0%......................................... $24.71 $30.25 $35.78 $41.31 $46.84 $52.37 68
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