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that the Common Stock Warrants had a value in the range of $22
million to $52 million.
Respondent's Support of Fair Market Value Estimation
In support of the Commissioner's position, respondent relies
on the Interstate Valuation and on a compilation of materials
relating to the valuation of the Securities performed by J.C.
Bradford (Bradford Materials) assembled by respondent. As
explained above, we have sustained petitioners' objection to the
admission of the Interstate Valuation.
Petitioners waived their objections to the admission of the
Bradford Materials. Consequently, the evidence relating to the
valuation prepared by J.C. Bradford has been admitted even though
that evidence could have been excluded as hearsay. See Waddell
v. Commissioner, 841 F.2d at 267. Petitioners, however, do not
concede the accuracy or validity of the statements contained in
the Bradford Materials.
Even though admitted into evidence, we are free to accept or
reject the valuation amounts developed by J.C. Bradford, as we
deem appropriate based on the record. See Seagate Tech., Inc., &
Consol. Subs. v. Commissioner, 102 T.C. 149, 186 (1994); cf.
Transamerica Corp. v. United States, 15 Cl. Ct. at 471-472. No
one involved in preparing the Bradford Materials was available at
trial for cross-examination. See supra note 12. Accordingly, we
accord the Bradford Materials little weight.
Determination of Fair Market Value of the Securities
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