Common use of Discounted Cash Flow Analysis Clause in Contracts

Discounted Cash Flow Analysis. Bear Xxxxxxx performed a discounted cash flow analysis based on an analysis of the present value of future cash flows potentially realizable from the continuing operation of the Xxxx'i segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Xxxx'i segment operating results through the end of fiscal year 2004. Bear Xxxxxxx computed the present value of the free cash flows of the Company's Xxxx'i segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 11% to 13% per year. These discount rates were based on the WACC for both the Residential segment and the Xxxx'i segment's comparable companies. As noted previously, the Residential segment comparable companies have such low betas, Bear Xxxxxxx calculated the Residential segment comparable companies WACC assuming a market beta. Bear Xxxxxxx also computed the present value of the terminal value of the Xxxx'i segment at the end of fiscal year 2004 by applying a range of unlevered free cash flow multiples of 5 times to 7 times the Xxxx'i segment's estimated fiscal year 2004 EBITDA and applying these terminal values to a range of discount rates of 11% to 13% per year. The range of terminal unlevered free cash flow multiples was determined by analyzing the current and historical unlevered free cash flow multiples of the Company and comparable homebuilder companies and transactions and factoring in the extremely long-term aspect of this asset and the limited near-term cash flows. SUMMARY OF ANALYSES REGARDING XXXX'I SEGMENT The table below sets forth the enterprise value ranges for each of the analyses performed:

Discounted Cash Flow Analysis. Bear Xxxxxxx performed a discounted cash flow analysis based on an analysis a review of the present value of future cash flows potentially realizable from the continuing operation of the Xxxx'i Hawaii Commercial segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Xxxx'i Hawaii Commercial segment operating results through the end of fiscal year 2004. Bear Xxxxxxx computed the present value of the free cash flows of the Company's Xxxx'i Hawaii Commercial segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 11% to 13% per year. These Such discount rates were based on take into account the WACC for both quality of the Residential segment Hawaii Commercial segment's underlying properties and the Xxxx'i segment's comparable companies. As noted previously, the Residential segment comparable companies have such low betas, Bear Xxxxxxx calculated the Residential segment comparable companies WACC assuming a market betarisk associated with attracting tenants to various vacant properties. Bear Xxxxxxx also computed the present value of the terminal value of the Xxxx'i segment Company at the end of fiscal year 2004 by applying a range of unlevered free cash flow NOI multiples of 5 9.5 times to 7 10.5 times the Xxxx'i Hawaii Commercial segment's estimated fiscal year 2004 EBITDA NOI and applying these terminal values to a range of discount rates of 11% to 13% per year. The range of terminal unlevered free cash flow NOI multiples was determined by analyzing the current and historical unlevered free cash flow NOI multiples of the Company and comparable homebuilder companies and transactions and factoring in the extremely long-term aspect stabilized cash flows prospects of the Company at the end of fiscal 2004. Bear Xxxxxxx noted that this asset segment should be discounted back at a higher rate than the comparables due to the overall softness of the commercial and retail market, the lesser quality of the assets and the limited nearabove-term average risk of the underlying projected cash flows. SUMMARY OF ANALYSES REGARDING XXXX'I SEGMENT The table below sets forth the enterprise value ranges for each of the analyses performed:.

Discounted Cash Flow Analysis. Bear Xxxxxxx performed a discounted cash flow analysis based on an analysis a review of the present value of future cash flows potentially realizable from the continuing operation of the Xxxx'i Mainland Commercial segment. This analysis was based on estimates and guidance provided by the Company's management for estimating the Xxxx'i estimated Mainland Commercial segment operating results through the end of fiscal year 2004. Bear Xxxxxxx computed the present value of the free cash flows of the Company's Xxxx'i Mainland Commercial segment for the five fiscal years from 2000 through 2004 by applying a range of discount rates of 1110% to 1312% per year. These Such discount rates were based on take into account the WACC for both quality of the Residential segment Mainland Commercial segment's underlying properties and the Xxxx'i segment's comparable companies. As noted previously, the Residential segment comparable companies have such low betas, Bear Xxxxxxx calculated the Residential segment comparable companies WACC assuming a market betarisk associated with attracting tenants to various new properties. Bear Xxxxxxx also computed the present value of the terminal value of the Xxxx'i Mainland Commercial segment at the end of fiscal year 2004 by applying a range of unlevered free cash flow Adjusted Net Operating Income ("NOI") multiples of 5 9.5 times to 7 10.5 times the Xxxx'i Mainland Commercial segment's estimated fiscal year 2004 EBITDA NOI and applying these terminal values to a range of discount rates of 1110% to 1312% per year. The range of terminal unlevered free cash flow NOI multiples was determined by analyzing the current and historical unlevered free cash flow NOI multiples of the Company and comparable homebuilder companies and transactions and factoring in the extremely long-term aspect of this asset and the limited near-term stabilized cash flows. SUMMARY OF ANALYSES REGARDING XXXX'I SEGMENT The table below sets forth the enterprise value ranges for each flows prospects of the analyses performed:Company at the end of fiscal 2004.