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market approach of Marrero Land to a group of publicly traded
REIT's and REOC's that he selected from the Realty Stock Review,
which publishes a market analysis of REIT's and REOC's, their net
asset values, and dividend yields. Mr. Chaffe indicated in his
expert report that the selection of REIT's and REOC's as a guide-
line for comparison was intended to give actual free market
pricing comparisons for the common stock of Marrero Land which
did not trade freely in an open marketplace. The following is a
summary of the various pricing calculations and tests that Mr.
Chaffe performed:
REIT's Value Indication
Net asset value18 $26,200,588
Pretax earnings 14,712,697
Actual distribution 8,156,459
Assuming Marrero Land
pays out 95% of 14,673,153
earnings
Finding of value by
implicit weighting $18,000,000
REOC's Value Indication
Net asset value19 $24,969,430
After-tax earnings 13,267,949
Dividends 14,435,484
Finding of value by
implicit weighting $17,000,000
18In determining the net asset value of Marrero Land, Mr.
Chaffe relied on, inter alia, Mr. Egan's valuation of the re-
maining unimproved real properties.
19See supra note 18.
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