Louise B. Barnes, Donor, et al. - Page 26

                                        -26-                                          
          than the guideline companies;14 (e) there have been no sales of             
          Rock Hill stock and only limited family and insider sales of Home           
          stock at about book value; (f) the Home and the Rock Hill stocks            
          are not registered or traded on any exchange or over the counter;           
          and (g) the Home and the Rock Hill stocks represent very small              
          minority interests that have no ability to direct the affairs of            
          either company or cause the sale of its assets.  These facts                
          support application of an above average discount for lack of                
          marketability.                                                              
               Respondent disagrees with Hawkins' use of some studies of              
          sales of restricted stock and initial public offerings which                
          respondent claims contained errors.  Respondent also asserts that           
          the companies in the studies used by Hawkins were not comparable            
          to Home and Rock Hill.  Respondent points out that Hawkins did              
          not relate the companies in the studies to Home and Rock Hill in            
          terms of marketability, size, profitability, history, risk,                 
          speculativeness, or growth.  However, Hakala also failed to                 
          compare the companies in the studies to Home and Rock Hill on               
          those points.                                                               
               Hawkins and Hakala mostly cited the same studies.  Hakala              
          cited eight studies in which the average discount for lack of               
          marketability ranged from 30 percent to 60 percent.  He                     


               14 Stocks with low dividends typically suffer more from lack           
          of marketability than stocks with high dividends.  Pratt, supra             
          at 358.                                                                     




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