- 8 -
1987, was $734,710.7 Eatel’s (or DATA’s, as the case may be)
1988 through 1992 net income (after taxes) was $6,380,390,
$4,015,870, $5,148,594, $5,491,633, and $6,587,602, respectively.
Eatel paid dividends of $1 per share in 1990, $2 per share in
1991, and $2.50 per share in 1992. Neither Eatel nor DATA paid
any dividends before August 31, 1989.8
There were no sales or redemptions of Eatel stock between
1989 and 1994.
OPINION
1. Relevancy
Before turning to the primary issue of valuation, we must
decide a relevancy objection raised by petitioner (and submitted
to and filed by the Court as a written motion) as to stipulations
and other evidence relating to the: (1) Offers in 1993 to
purchase all of Eatel’s stock and (2) redemption of the Other
Shareholders’ stock at $75.1555 per share. Petitioner argues
that this evidence (the disputed evidence) is irrelevant for
purposes of determining value on the Valuation Dates because:
(1) There were no agreements, offers, or negotiations on the
Valuation Dates to sell all of Eatel’s stock or assets; (2) the
7 The 6-month period stemmed from DATA’s change to the
calendar year from a fiscal year ended June 30. An income
statement included in Exhibit 3 erroneously lists this 6-month
period as ended on June 30, 1987.
8 We are unable to determine Eatel’s net income (before
taxes) or dividends for 1993 because the record does not reveal
Eatel's financial data for that year.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011