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A.G. Edwards A.G. Edwards Petitioner's Petitioner's Respondent's
General ESOP First Expert Second Expert Expert
Equity Value $100,000,000* $100,000,000* $106,000,000* $97,740,000* $115,175,500*
Discount 40% 20%60% 40% 15%
Value Per Share $35.45 $47 $25.15 $34.55$47
* Represents the approximate average
equity value for Hastings from all
methods utilized by each expert.
We conclude that the total equity value of Hastings was $100
million on the valuation date. This falls within the range for
the estimated equity value of Hastings reflected in the reports
of each of the experts and in particular is supported by the 1993
A.G. Edwards' report.
As indicated, in determining the fair market value of
decedent's 366,385 shares of stock in Hastings, the parties'
experts all agree that some discount reflecting lack of
marketability is appropriate. They disagree, however, as to the
percentage -– suggesting 15 to 60 percent.
With regard to the appropriate marketability discount for
small blocks of stock in Hastings, the testimony of the officer
and treasurer of Western is significant. He testified that $47
per share (reflecting a 20-percent discount) was a fair and
accurate price for the 2,000 shares of stock he purchased from
(...continued)
reflect that valuation in the schedule, nor do we refer to it
again in the opinion.
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Last modified: May 25, 2011