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Class B Nonvoting Stock Valuation
Equity value of J.R. Simplot Co. $830,000,000
Less: Aggregate premium for voting
privileges (76.445 shares x $325,724.38) (24,900,000)
Less: Aggregate class A share portion of
equity value (76.445 shares x $5,871.32) (448,833)
Net value of all class B shares 804,651,167
Value of class B stock on a per share
basis ($804,651,167 � 141,288.584) 5,695.09
Value of decedent's 3,942.048 shares of x 3,942.048
class B nonvoting stock, before discount 22,450,318.14
All of the experts agreed that a lack of marketability
discount (liquidity discount) is appropriate; they essentially
agreed that the proper discount should be approximately 35 percent,
although Dr. Spiro allowed a 40-percent liquidity discount for the
class B nonvoting stock. Dr. Spiro believed that although a
restriction of the transferability of the class A voting stock
existed, decedent's class B shares should be given a slightly
higher liquidity discount because the class B stock lacks voting
rights. We adopt Dr. Spiro's liquidity discounts of 35 percent for
decedent's class A shares and 40 percent for decedent's class B
shares. Therefore, we find and thus conclude that the fair market
value of decedent's 18 shares of class A voting stock of J.R.
Simplot Co., as of the valuation date, is $3,879,702.19 or
$215,539.01 (rounded) per share, and the fair market value of
decedent's 3,942.048 shares of class B nonvoting stock of J.R.
Simplot, as of the valuation date, is $13,470,190.88 or $3,417.05
(rounded) per share.
A few final words before leaving the valuation issues. We
recognize the disparate ratio of our determined value before
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