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discounts were applied separately. After examining data on control
premium studies, Mr. Gampel concluded that a 15-percent minority
interest discount was appropriate for both valuation dates. In
addition, Mr. Gampel concluded that a 30-percent lack of
marketability discount for both valuation dates was appropriate on
the basis of the following factors: The lack of “special
purchasers” in the time-share industry, the restrictive nature of
the buy-sell provision in the joint venture agreement, the overall
restrictions placed on transferability of the joint venture’s
interest, and the size and composition of each partner’s one-third
interest. Accordingly, after applying discounts to reflect lack of
control and lack of marketability, Mr. Gampel opined that the value
of WVI’s one-third interest in Powhatan Associates was $2,321,690
as of February 16, 1989, and $2,770,320 as of February 15, 1990.
After determining the value of WVI’s one-third interest in
Powhatan Associates, Mr. Gampel adjusted the book value of WVI’s
other assets to fair market value as of February 16, 1989, and
February 15, 1990. After making these adjustments, Mr. Gampel
determined that WVI’s adjusted book value was $3,328,707 as of
February 16, 1989, and $4,040,947 as of February 15, 1990. To
these values, Mr. Gampel applied a 15-percent contingency discount
that further reduced the adjusted book values of WVI to $2,829,401
as of February 16, 1989, and $3,434,805 as of February 15, 1990.
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