- 41 -
Inasmuch as Mr. Much valued decedent's J.R. Simplot Co. shares
on a marketable, minority-interest basis, he believed the same
basis should be applicable to the valuation of the Company's
Micron Technology holding. Accordingly, Mr. Much applied a 6-
percent net minority discount10 to the maximum amount of net
proceeds J.R. Simplot Co. would receive ($111,193,870), which
resulted in an equivalent marketable minority interest value of
$104,522,238 for the Micron Technology shares.
In sum, Mr. Much averaged the results he determined under the
market capitalization ($1,066,740,000) and discounted cash-flow
($1,079,900,000) methods, arriving at $1,073,320,000. He then
added his predetermined value of the Micron Technology shares
($104,522,238) and J.R. Simplot Co.'s cash balance as of May 31,
1993 ($31,232,000), yielding an adjusted TIC value of
$1,209,070,000 (rounded). He then subtracted interest-bearing debt
($564,418,000), which yielded a marketable minority equity value of
$644,650,000 (rounded), or $4,560.18 per share of class A voting
and class B nonvoting stock outstanding.11 (In making the
10 Mr. Much applied this discount because, in his view, a
minority shareholder of J.R. Simplot Co. could not force the sale
of the Micron Technology shares.
11 Mr. Much calculated the $644,650,000 marketable
minority equity value of J.R. Simplot Co. as follows:
Total invested capital
(J.R. Simplot operations) $1,073,320,000
Value of Micron Technology
shares 104,522,238
(continued...)
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