Jane O. Kosman - Page 24

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            expert concluded that the value of Kosman, Inc.'s Scottsbluff                                 
            National Corp. stock was as follows:                                                          
                         Date                 Total Value    Value Per Share                              
                        9/30/86      $2,810,133         $218.96                                           
                        3/31/87       2,991,447          233.09                                           


                  b.    Respondent's Experts’ Estimate of the Value of Kosman,                            
                        Inc.'s Scottsbluff National Corp. Stock                                           
                  Respondent relied on expert reports coauthored by three                                 
            experts.  They used:  (1) An income method, based on Scottsbluff                              
            National Corp.'s projected after tax earnings over a 5-year                                   
            period; and (2) a market method, based on the price of stock in                               
            comparable banks.  To apply the income method, respondent's                                   
            experts estimated the present value of Scottsbluff National                                   
            Bank's projected after-tax earnings for 5 years.  They used a                                 
            14-percent discount rate on the assumption that an investment                                 
            in Scottsbluff National Bank was comparable to one in "Standard &                             
            Poor’s 500 small capitalized companies".  Respondent's experts                                
            concluded that a 100-percent stock interest in Scottsbluff                                    
            National Corp. was worth $19.2 million on September 30, 1986, and                             
            March 31, 1987.                                                                               
                  To apply the market method, respondent's experts used as                                
            comparables First Commerce and First National Bank of Nebraska.                               
            They estimated that First Commerce stock traded at 54 percent of                              
            its book value per share on December 31, 1986.  They noted that                               
            Scottsbluff National Corp. was more profitable and paid higher                                



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