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dividends per share than First Commerce, and had no long-term
debt. Respondent's experts said that investors would value
Scottsbluff National Corp. at a higher multiple of earnings and
percentage of book value per share than First Commerce.
Respondent's experts estimated that shares of First National
of Nebraska stock traded at 86 percent of its book value per
share on December 31, 1986. They noted that First National of
Nebraska was larger, more diversified, more profitable, and had
better income growth than Scottsbluff National Corp. They said
that the market would value Scottsbluff National Corp. at a lower
percentage of book value per share than First National of
Nebraska. Despite that conclusion, respondent’s experts
estimated, using the market method, that Scottsbluff National
Corp. stock would sell at 125 percent of book value per share.
They did not explain this inconsistency. Using a market method,
they concluded that a 100-percent stock interest in Scottsbluff
National was worth $18.8 million on September 30, 1986, and
March 31, 1987.
As discussed above, respondent's experts valued a stock
interest in Scottsbluff National Corp. at $19.2 million under an
income method. They concluded that the fair market value of a
100-percent stock interest in Scottsbluff National Corp. was $19
million on September 30, 1986, and March 31, 1987.
Respondent's experts applied a 15-percent minority interest
discount and a 10-percent discount for lack of marketability in
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