- 14 -
we shall not accept Mr. Harrell's opinion that a premium should
be applied to the demand loans.
We also are not convinced on the present record that Mr.
Harrell was correct in not applying any lack-of-marketability
discount in valuing the stock interest in question.
Despite the deficiencies that we found in the respective
expert reports and opinions of the parties' experts, we agree
with both experts that, under the market approach to determining
the fair market value on the valuation date of decedent's 50-
percent stock interest in B&W Longview, the combined use of the
market multiple method and the transaction method would produce a
better indication of that value than the use of only the transac-
tion method. However, as discussed above, we are not persuaded
that the respective results of Mr. Bernstein's modified market
multiple method and Mr. Harrell's market multiple method are
reliable. Consequently, we are left with a deficient record from
which to determine the effect of the proper application of the
market multiple method on the determination of the value of the
stock interest in question. Nonetheless, we shall determine the
fair market value on the valuation date of decedent's 50-percent
stock interest in B&W Longview by applying our best judgment to a
record that we find to be inadequate in that and other respects8
8 We take this opportunity, as we did before and after the trial
of this case, to remind the parties that questions of fair market
(continued...)
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