Estate of Emily F. Klauss - Page 9

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          outperform large stocks during the 1980's and 1990's.  We give                
          little weight to Fuller’s analysis.  Fuller appeared to                       
          selectively use data that favored his conclusion.  He did not                 
          consistently use Ibbotson Associates data from the 1978-92                    
          period; he relied on data from 1978-92 to support his theory that             
          there is no small-stock premium8 but used an equity risk premium              
          of 7.3 percent from the 1926-92 data (rather than the equity risk             
          premium of 10.9 percent from the 1978-92 period).  If he had used             
          data consistently, he would have derived a small-stock premium of             
          5.2 percent and an equity risk premium of 7.3 percent using the               
          1926-92 data, rather than a small-stock premium of 2.8 percent                
          and an equity risk premium of 10.9 percent using the 1978-92                  
               We conclude that Johnson appropriately applied a small-stock             
          premium in valuing the Green Light stock.                                     
               2.   Growth Rate                                                         
               Johnson derived price/earnings multiples from the guideline              
          companies that he adjusted to account for differences between                 
          their expected growth rates and that of Green Light.  He selected             
          a 5-percent growth rate for Green Light and used growth rates for             
          the guideline companies ranging from 14.3 to 15.5 percent.                    

               8  The Ibbotson Associates data for 1978-92 show a 2.8-                  
          percent small-stock premium.  See Ibbotson Associates (1993),                 
          supra at 128.                                                                 

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