Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 293

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 293
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 International and its industry. The equation used for the calculation of the WACC is presented as follows:

|       |     | Ko = |     | We * Ke + Wd * Kd * (1-Tm)                        |
| where |     |      |     |                                                   |
|       |     | Ko = |     | the weighted average cost of capital              |
|       |     | We = |     | the proportion of equity in the capital structure |
|       |     | Ke = |     | the cost of equity                                |
|       |     | Wd = |     | the proportion of debt in the capital structure   |
|       |     | Kd = |     | the pretax cost of debt                           |
|       |     | Tm = |     | the marginal tax rate for a C corporation         |

For its First Opinion, ValueScope based the capital structure estimates on the median of the guideline companies’ debt to capital ratio. Based on these determinations, ValueScope determined the weighted average cost of capital as: [0.808 * 40.0%] + [0.192 * 11.7% * (1 – 15.0%)] = 34.2% (rounded) For its Second Opinion, ValueScope based the capital structure estimates on the median of the guideline companies’ debt to capital ratio. Based on these determinations, ValueScope determined the weighted average cost of capital as: [80% * 40.0%] + [20% * 11.5% * (1 – 15.0%)] = 26.0% (rounded) Market Approach The market approach considers the implied pricing in third -partytransactions of comparable businesses or assets. Transactions are analyzed in order to identify pricing patterns or trends that can be used to infer value on the subject business or asset. Adjustments are made to the transaction data to account for relative differences between the subject and the comparable transactions. The primary strength of the market approach is that it offers relatively objective pricing evidence from the market at large and, aside from certain adjustments to the transaction data, requires few assumptions to be made. The market approach is most applicable to highly homogeneous assets or businesses for which a ready market exists. The first step in performing the guideline public company analysis is the identification and selection of comparable companies. To be included in ValueScope’s guideline sample set, companies had to be engaged in the same or similar line of business as Scage International as of the Initial Valuation