Valuation of the “bundle of rights” held by holders of various classes of securities to assign fair shares in a new single issue is particularly important because of the reorganizations taking place as a result of the Public Utility Holding Company Act of 1935. The method discussed here takes into account the likely way in which the SEC would view the fairness of the apportionment. The method entails finding the present value of the total claims of each security holder, adding the values together, and determining the share of each in the new stock as the proportion each contributed to the total. The most important element is estimating normal earning power; also, the analyst must take into account the realities of earnings to be reinvested versus the share of earnings to go out as dividends and consider the fact that arrears on preferred must be paid off according to class. After estimating earnings by class, the analyst carries out the usual present value approaches to find a fair apportionment.