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publicly traded companies would not necessarily be representative
of the value of voting rights inherent in an interest in a closely
held company. Dr. Spiro observed that voting premiums observed in
U.S. stocks tend to be understated.
Dr. Spiro next considered the aggregate value of J.R. Simplot
Co.'s class A voting stock on a 23.55-percent minority block basis.
In reviewing relevant empirical evidence, Dr. Spiro found aggregate
voting rights premiums ranging from 8.58 percent to 23.9 percent of
the equity value of the Company. After evaluating factors which he
deemed relevant (such as the lack of dividend payments, the remote
possibility of liquidation, the nonmajority status of the voting
stock block, the relative distribution of voting rights, the
attractiveness of J.R. Simplot Co. as an acquisition target, the
nature of the family-owned business, and the lack of a foreseeable
takeover offer) Dr. Spiro determined that the appropriate aggregate
voting rights premium applicable to decedent's block of voting
shares was 10 percent of J.R. Simplot Co.'s "equity capitalization
value" and then apportioned it according to decedent's 23.55-
percent interest.
Thus, calculating the aggregate value of the class A voting
and class B nonvoting stock of J.R. Simplot Co. on a freely traded,
minority-interest basis25 as of June 24, 1993, Dr. Spiro arrived at
a pro rata value of class A voting and class B nonvoting shares of
25 Dr. Spiro did not apply a minority discount to the
value of decedent's class A voting shares because the underlying
equity value of J.R. Simplot Co. was calculated on a freely
traded minority-interest basis.
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