Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 489

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 489
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 Free Rate The risk -freerate refers to the theoretical rate of return an investment with zero risk. A commonly -usedproxy for risk -freereturns are the United States Treasury bonds. In our analysis, we used the spot 10 -YearUnited States Treasury Yield as of October 25, 2024. That estimate was 4.25%.

| Value of Staffing 360 Solutions, Inc. Common Stock |

Annex B-8

Equity Risk Premium The equity risk premium (ERP) is the spread between the return on an estimate of the market portfolio and a risk -freerate. It is intended to capture the additional return investors require to hold risky equity securities as opposed to risk -freedebt. The ERP changes over time, as investors’ tolerance for risk changes. As of October 25, 2024, Kroll reported a historical long -termequity risk premium of 5.0%. Beta Beta is a risk measure in the sense that it measures the tendency of a stock to move up and down with the market. Mathematically, it is the slope coefficient derived by regressing a stock’s returns on the market’s returns. To test the fit of the regression, an analyst can calculate the R -Squaredof the beta. The R -Squaredin this context represents the proportion of the variance in the stock’s returns that can be explained by the variance in the market’s returns. It provides a measure of how well the regression model fits the data. An R -Squaredof 1 means that 100% of the variability in the independent variable can be explained in the dependent variable. Conversely, an R -Squaredof 0 means that the independent variable does not explain any of the variability in the regression. Considering the low trading volume in the Company’s stock, and an R -Squaredof the 5 -yearweekly beta of .02, we opted to use the median Vasicek -Adjustedbeta provided by Kroll. The estimated beta for the Human Resource & Employment Services industry as of October 25, 2024 was 1.13. Risk Premium Over CAPM (Size Premium) The equity risk premium (ERP) is the spread between the return on an estimate of the market portfolio and a risk -freerate. It is intended to capture the additional return investors require to hold risky equity securities as opposed to risk -freedebt. The ERP changes over time, as investors’ tolerance for risk changes. Separately, empirical evidence shows that smaller