Estate of Richard R. Simplot - Page 66




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               In addition to not adjusting for the seasonal nature of short-         
          term debt, in our opinion, Mr. Much should not have discounted the          
          value of the Micron Technology stock by applying a 6-percent                
          minority discount.  He valued both the operating assets of J.R.             
          Simplot Co. and its investment in Micron Technology on a minority           
          basis.  Applying a 6-percent minority discount to the Micron                
          Technology stock has the effect of taking two minority discounts.           
          Although we agree with Mr. Much's argument that as a minority               
          shareholder in Micron Technology, J.R. Simplot Co. would lack               
          absolute control with regard to any disposition of the Micron               
          Technology stock, we do not believe a greater discount for an               
          investment asset than for an operating asset is justified when the          
          Company has already been valued on a minority basis.                        
               To conclude this aspect of our valuation task, we believe Mr.          
          Much's determination of J.R. Simplot Co.'s equity value contained           
          two major flaws.  Consequently, although we believe the equity              
          value of the Company may be greater than $830 million, we adopt Dr.         
          Spiro's $830 million equity value.  (We note that Dr. Spiro stated          
          that if the Company's cash-flows could have been maximized, the             
          equity value of J.R. Simplot Co. would be greater than $830                 
          million.  Further, we are mindful that the Company is resource              
          rich, and as Gordon C. Smith, the CEO and president of the Company          
          in 1993, testified, the Company has assets worth substantially more         
          than their book values.)                                                    
               We now turn our attention to the more difficult task--                 
          ascertaining the amount of the collective voting premium (expressed         

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