Utilicorp United, Inc. & Subsidiaries, F.K.A. Missouri Public Service Co. - Page 10

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          Mr. Moody applied his earnings analysis by considering an                   
          estimate of annual net operating income, which was adjusted for             
          income tax considerations and then discounted to present value              
          using an after-tax discount rate of 10.55 percent.                          
          Mr. Moody reconciled the difference in result between his                   
          two valuation approaches by assigning virtually all of the excess           
          under his earnings analysis to certain business assets, such as             
          the right to receive payments under the power purchase agreement,           
          retained by THP.                                                            
          Respondent's Expert                                                         
          Respondent presented the expert testimony of Richard H.                     
          Knoll, senior consultant, Business Valuation Services, Inc.                 
          Mr. Knoll is experienced in the valuation of assets, operating              
          entities, and proprietary technologies in the fields of petroleum           
          refining, chemical processing, food processing, pharmaceuticals,            
          and related fields.  Mr. Knoll is licensed as an engineer in the            
          State of Illinois.   Mr. Knoll has opinions as to the market                
          values of UtilCo's undivided 50-percent interest in (1) all of              
          the assets that he believed were acquired by UtilCo and Chrysler            
          Capital and (2) only the tangible assets acquired by UtilCo and             
          Chrysler Capital.  He is of the opinion that the market values of           
          such interests at December 17, 1987, were $32,250,000 and                   
          $20,650,008, respectively.                                                  
               In part, Mr. Knoll arrived at his opinions by determining              
          the replacement cost of the real and personal property purchased            




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