- 48 -
of mathematics, Hamm v. Commissioner, 325 F.2d at 940, on which
petitioner has the burden of proof, Rule 142(a). Based on our
examination of the entire record in this case, and using the
figures in the restricted stock and IPO studies cited in the
expert reports of Mr. Howard and Mr. Pratt as benchmarks of the
lack-of-marketability discount without regard to ADDI&C's built-in
capital gains tax and evaluating various factors specific to
ADDI&C and each of the blocks of stock in question, including the
factors listed in the expert report of Mr. Thomson, we find that
the lack-of-marketability discount without regard to that tax
should be $19 million. We further find that the total lack-of-
marketability discount that should be applied in this case and
that we have found should include $9 million which is attributable
to ADDI&C'S built-in capital gains tax is $28 million.
Based on our examination of the entire record in this case, we
find that on the valuation date the fair market value of each of
the two 25-share blocks of ADDI&C stock in question was
$10,338,725, or $413,549 per share.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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