- 40 - concluded that the fair market value of CamVic using the cost approach was $948,000 or $6,925 per share as of May 31, 1975, and $2,248,400 or $16,424 per share as of April 30, 1981.29 Applying the income approach and, in particular, the discounted debt-free cash- flow method, Mr. Kimmel concluded that CamVic's fair market value was $1,388,100 or $10,140 per share as of May 31, 1975, and $1,615,000 or $11,797 per share as of April 30, 1981. In reconciling these differences, Mr. Kimmel, in his report, accorded a "majority of the weight" to the income approach and "minimal weight" to the cost approach. In his report, Mr. Kimmel ultimately concluded that CamVic's fair market value was $1.3 million or $9,496 per share as of May 31, 1975, and $1.8 million or $13,148 per share as of April 30, 1981. For the reasons set forth below, we find that neither petitioners nor their expert have demonstrated that the fixed price per share as set out in the Buy-Sell Agreement reflected adequate 28(...continued) value. In his report, Mr. Kimmel stated that no comparables were found which were reflective of the business in which CamVic and CamRon were engaged and two businesses were found comparable to Ferguson. 29The disagreement between the parties' experts with respect to value pursuant to the cost approach is due to their differences over the fair market value of the underlying corporate assets. While there are relatively small differences over the amount of corporate liabilities, the differences with respect to corporate liabilities would have little impact on the value of the corporate stock.Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Next
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