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market capitalizations exceeded $75 million. He found that in
situations where both classes of stock traded publicly between
January 1990 and June 24, 1993, and where only one class held the
voting power and no dividend rights or other economic disparity
existed, the class with the voting power traded at an average 4.1-
percent premium over the per-share value of the nonvoting stock,
with a maximum price difference of 14.2 percent. According to Mr.
Ettelson, on June 24, 1993, the sample group of voting stock traded
at an average of 1.7 percent over the per-share value of the
nonvoting stock, with a maximum price difference of 10.3 percent.
Mr. Ettelson also studied publicly traded companies from June
24, 1993 to 1998, where only one class held the voting power and no
economic disparity in favor of the voting shares existed. The
average voting rights premium in such cases was 2.8 percent. In
examining studies by others, he noted that the shares of stock
having voting or greater voting rights traded at a premium of 5.4
percent to 9.2 percent relative to nonvoting shares.
Mr. Ettelson opined that no material economic benefit or
advantage existed to owning the 18 class A voting shares. Thus, he
stated he would not advise a hypothetical buyer to pay a
significant voting rights premium for decedent's class A stock in
excess of what he observed in the public markets (i.e., a typical
range of 3 to 7 percent, and occasionally up to 20 percent over the
fair market value of a nonvoting share).
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