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valuing Kosman, Inc.'s Scottsbluff National Corp. stock.
Respondent's experts concluded that the fair market value of
Kosman, Inc.'s 32.085 percent stock interest in Scottsbluff
National Corp. was $4,663,555 on September 30, 1986, and
March 31, 1987.
c. Analysis: Value of Kosman, Inc.'s Scottsbluff National
Corp. Stock
Petitioner's expert acknowledged that Scottsbluff National
Corp. was in better financial condition than First Commerce, the
company he considered to be most comparable. Petitioner's expert
estimated that First Commerce stock sold at 57.7 percent of its
book value per share on September 30, 1986, and March 31, 1987.
Petitioner's expert concluded that shares of Scottsbluff National
Corp. stock would sell at 60 percent of book value per share. We
believe that 60 percent is too low, considering Scottsbluff
National Corp.'s better financial condition.
Petitioner's expert said that by September 30, 1986, the
investing public thought the northwestern Nebraska economy might
improve soon. Petitioner's expert noted that from mid-1985 to
September 30, 1986, the price of First Commerce stock increased
76 percent from $7.50 per share to $13.25 per share.
Respondent's experts used as comparables four non-Nebraska
bank holding companies, including Mark Twain Bancshares in
St. Louis, Missouri. Respondent's experts did not adequately
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