- 23 -
revenue, which a potential buyer would focus on in formulating an
offering price for petitioner's stock. The $25 million offer
that has been made would certainly tend to validate such a
judgment. We conclude that an investment in petitioner's stock
was very attractive and that a hypothetical investor would have
received a handsome return through appreciation in the value of
petitioner's stock.
7. Prevailing Rates of Compensation for Comparable
Positions in Comparable Concerns
Petitioner and respondent rely on expert testimony with
respect to this factor. We have wide discretion when it comes to
expert testimony. Sometimes, an expert will help us decide a
case. See, e.g., Booth v. Commissioner, 108 T.C. 524, 573
(1997); Trans City Life Ins. Co. v. Commissioner, 106 T.C. 274,
302 (1996); see also M.I.C. Ltd. v. Commissioner, T.C. Memo.
1997-96. Other times, he or she will not. See, e.g., Estate of
Scanlan v. Commissioner, T.C. Memo. 1996-331, affd. without
published opinion 116 F.3d 1476 (5th Cir. 1997); Mandelbaum v.
Commissioner, T.C. Memo. 1995-255, affd. without published
opinion 91 F.3d 124 (3d Cir. 1996). We weigh an expert's
testimony in light of his or her qualifications, and with proper
regard to all other credible evidence in the record. We may
accept or reject an expert's opinion in toto, or we may pick and
choose the portions of the opinion which we adopt. Helvering v.
National Grocery Co., 304 U.S. 282, 294-295 (1938); Parker v.
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NextLast modified: May 25, 2011