- 53 - APPENDIX B Comparison of Experts’ Valuation of Williamsburg Vacations, Inc. Stock As of February 15, 1990 Valuation Of Powhatan Associates Petitioners’ Respondent’s Expert Experts “Pre-tax” value of Powhatan $22,456,921 $35,001,760 “Post-tax” value of Powhatan 13,968,205 Pro-rata value of 1/3 joint venture interest 4,656,000 11,667,253 Discount for lack of control 15% (698,400) 5% (583,363) Discount for lack of marketability 30% (1,187,280) 10% (1,108,389) Fair market value of Powhatan 1/3 interest 2,770,320 9,975,502 Valuation Of WVI Petitioners’ Respondent’s Expert Experts1 Shareholders’ equity, 12/31/89 $1,189,400 $1,189,397 Estimated earnings to 2/15/90 348,794 Fair market value of Powhatan 2,770,320 9,975,502 Fair market value of development fee income 799,000 1,557,915 FMV promissory note from shareholder 19,223 Land held for investment 10,000 10,000 Other changes to assets 22,126 Cost basis of Powhatan joint venture (546,560) (546,556) Book amount of promissory note (192,230) Land held for investment at cost (357,000) (357,000) Tax adjustment (4,391,591) Other changes to liabilities (12,881) 4,040,947 7,466,912 Contingency discount 15% (606,142) --- Fair market value of Williamsburg Vacations, Inc. 3,434,805 7,466,912 1 We are mindful that several mathematical errors exist in respondent’s computation. We do not believe these discrepancies are material.Page: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Next
Last modified: May 25, 2011