FocusInvestor.

com Risk Arbitrage Return Calculation Sheet

Days to Deal Closing (Best Case): 180

Days to Deal Closing (Worst Case): Chance of deal closing under original terms: 95%
360
Chance of deal not closing in expected time: 5%
Price Paid per Share: $7.5000
Expected Dollar Spread under original deal terms: $2.50
Total Shares Owned: 5,000
Expected Stock Price retreat if the deal is terminated: $2.00
Gross Spread under original terms: 33%
Weighted Expected Mid-Range Closing Price: $2.2750

Best Closing Price: $10.0000 Margin Expense*: $0.00

Mid-Range Closing Price: $9.7750 Margin Expense per Share: $0.00
Estimated Worst Case Closing Price: $8.0000 Total Commissions: $8.00
Commissions Per Share: $0.0016

AR* for the Best Time/Best AR* for the Worst Time/Best Price
Price Scenario: 77.70% Scenario: 33.30%

AR for the Best Time/Mid- AR for the Worst Time/Mid-Range Price

Range Price Scenario: 69.80% Scenario: 30.31%

AR for the Best Time/Worst AR for the Worst Time/Worst Price

Price Case Scenario: 13.73% Scenario: 6.64%
*AR=Annualized Return *AR=Annualized Return

Fields outlined in Green

are Input Fields

*(FI.com doesn't recommend the use of margin)

Copyright 2001 FocusInvestor.com . Reproduction or revision of this form not authorized without permission of FocusInvestor.com. Developed
by Rich Rockwood with assistance provided by Devon Everhart, Matt Boice, and Mike Whitlock.