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APPENDIX A
Comparison of Experts’ Valuation of
Williamsburg Vacations, Inc. Stock
As of February 16, 1989
Valuation Of Powhatan Associates
Petitioners’ Respondent’s
Expert Experts
“Pre-tax” value of Powhatan $18,817,787 $32,866,718
“Post-tax” value of Powhatan 11,704,663
Pro-rata value of 1/3 joint
venture interest 3,902,000 10,955,573
Discount for lack of control 15% (585,300) 5% (547,779)
Discount for lack of
marketability 30% (995,010) 10% (1,040,779)
Fair market value of Powhatan
1/3 interest 2,321,690 9,367,015
Valuation Of WVI
Petitioners’ Respondent’s
Expert Experts
Shareholders’ equity, 12/31/88 $840,100 $840,086
Estimated earnings to 2/16/89 359,324
Fair market value of Powhatan 2,321,690 9,367,015
Fair market value of development
fee income 697,000 1,596,262
FMV promissory note from shareholder 19,223
Land held for investment 10,000 10,000
Other changes to assets 22,127
Cost basis of Powhatan joint venture (369,400) (369,421)
Book amount of promissory note (192,230)
Land held for investment at cost (357,000) (357,000)
Tax adjustment (4,228,419)
Other changes to liabilities 207
3,328,707 6,880,857
Contingency discount 15% (499,306) ---
Fair market value of Williamsburg
Vacations, Inc. 2,829,401 6,880,857
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