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Based on the arguments of the parties and the record, we
conclude that a 15-percent discount for lack of marketability is
appropriate for the stock of Kosman, Inc.
c. Nonvoting Share Discount
Petitioner's expert applied a discount of 10 percent to the
nonvoting common shares. He cited an example where a buyer
received a 38.9-percent discount, but he did not compare that
transaction to this case or explain why he chose 10 percent.
Respondent's experts applied a 4-percent discount. They
cited a study published in the April 1983 issue of "Journal of
Financial Economics" (JFE) ("The Market Value of Control in
Publicly Traded Corporations"), by R.C. Lease, J.. McConnel, and
W.H. Mikkleson. The JFE study evaluated premiums paid for sales
of nonvoting shares in publicly traded corporations which had
stock with two different voting rights. The JFE study showed
that premiums for superior voting rights usually ranged from 2 to
4 percent. Respondent's experts said that the JFE study shows
that a 2- to 4-percent discount should apply to stock with
inferior voting rights in this case, even though Kosman, Inc.,
stock was not publicly traded. We apply a discount of 4 percent
to value the nonvoting common shares. E.g., Wallace v. United
States, 566 F. Supp. 904, 917 (D. Mass. 1981) (voting shares
valued at 5 percent higher premium than nonvoting shares); Estate
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