You stated: "I don't know what PZN's adjusted TAXABLE income was for the 1st 6 months of 1999, but their net earnings were about $.35 total for the first two quarters combined."
I didn't recheck these numbers for precision, but Q1 included a .85/sh charge for elimination of deferred taxes due to the merger and expected REIT qualification. This doesn't reduce E&P, so book net income (close to E&P) for the first six months is closer to $1.20.
Quite a while ago there were numerous posts discussing the quarterly reduction of CCA's E&P (avilable for special dividend). It's estimated to be the .05/sh per quarter plus another $20-25MM due to "regular" dividends in excess of current E&P.
So, again, the special dividend, if paid in cash will be $1.54, less about 10% dilution and .05 to .10 for operating expense increases. Even if not paid in cash, the special dividend will be that amount, and will be taxable to that extent.