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B. Valuations of Respondent's Experts
1. Herbert T. Spiro
Respondent's first expert, Herbert T. Spiro, has been
president of American Valuation Group, Inc., a consulting firm
specializing in economic analyses and financial valuations, since
1985, as well as a professor of finance at California State
University at Northridge. In his expert report submitted for
trial, Dr. Spiro concluded that as of the valuation date, the fair
market value per share of J.R. Simplot Co.'s class A voting stock
was $616,116.36, and the value per share of J.R. Simplot Co.'s
class B nonvoting stock was $3,522.79 (resulting in the value of 18
shares of class A voting stock at $11,090,094 and 3,942.048 shares
of class B nonvoting stock at $13,887,007).
Dr. Spiro's approach in determining an equity value for J.R.
Simplot Co. was generally similar to that of Mr. Much. First, he
valued J.R. Simplot Co. exclusive of its Micron Technology
investment and then added the value of the Micron Technology
investment to determine the total equity value of J.R. Simplot Co.
In determining the value of J.R. Simplot Co. exclusive of its
Micron Technology holding, Dr. Spiro (in a manner similar to that
of Mr. Much) used both the income and market approaches15 and then
15 According to Dr. Spiro, the income approach is based on
the premise that a rational buyer of an asset would pay only the
equivalent of the present value of the net cash stream realized
from the asset. Future cash inflows and outflows are projected
in this analysis and then discounted to the present to yield a
value. The market approach presumes that the most an investor
will pay for an asset is the price other investors are currently
(continued...)
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