Estate of James Waldo Hendrickson - Page 55

                                        - 55 -                                         
                                Guideline method ratios                                
                          Price/earnings    Price/book    Price/assets                 
                         multiple       ratio               ratio                     
          Fuller                                                                       
                    Mean       11.20     120.50%             11.90%                    
                    Median     10.40     110.30              12.10                     
                    High       15.40     171.50              16.30                     
                    Low        6.70      72.10               6.40                      
          Magee                                                                        
               Control                                                                 
                    Mean       9.16      124.14              10.38                     
                    Median     8.64      124.87              9.95                      
                    High       16.40     167.76              15.00                     
                    Low        2.74      76.19               5.41                      
               Minority                                                                
                    Mean       6.42      54.73               n/a                       
                    Median     6.45      52.74               18.52                     
                    High       6.47      82.05               37.60                     
                    Low        6.35      32.38               9.50                      
          Based on the data of their respective guideline companies,                   
          Messrs. Fuller and Magee chose the following ratios to value the             
          estate shares:                                                               
                             Guideline method ratios used                              
                             in valuing the estate shares                              
                    Price/earnings        Price/book    Price/assets                   
               Fuller     14.13*         153.7%         12.3%                          
               Magee      5.5            65.0%        not used                         
               * Calculated, but not used in actual valuation                          
               Differences in perception are common in questions of                    
          valuation.  The differing ratios chosen by Messrs. Fuller and                
          Magee to value the estate shares reveal an extreme divergence of             
          views.  All three ratios used by Mr. Fuller exceed the respective            

Page:  Previous  41  42  43  44  45  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  Next