Estate of James J. Renier, Deceased, Kent L. Renier and Dubuque Bank & Trust Company, Co-Executors - Page 9

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               The estate’s first expert, Mr. Kramer, also considered an              
          asset, income, and market approach and ultimately concluded that            
          Renier’s valuation should be based on an average of the results             
          indicated by the income and market approaches.  Through this                
          averaging process, Mr. Kramer concluded that Renier’s shares had            
          an estimated value of $36.89 per share and that decedent’s 22,100           
          shares therefore had a total value of $815,158.50 on the                    
          valuation date.                                                             
               The estate’s second expert, Mr. Lannom, did not use an asset           
          or income approach but made two market approach calculations                
          using data on the sales of privately held companies supplied by             
          the Institute of Business Appraisers.  In addition, Mr. Lannom              
          applied four different “rules of thumb” to value Renier.  Using             
          his market approach and rules of thumb, Mr. Lannom arrived at               
          various values for Renier ranging from a low of $946,000 to a               
          high of $1,100,000.  Mr. Lannom then added a “key-man” discount             
          equal to 10 percent of the value of the operating assets.                   
          Finally, Mr. Lannom concluded that decedent’s 88.4-percent                  
          interest in Renier was worth approximately $852,000 on the                  
          valuation date.3                                                            

               3 Although Mr. Lannom testified that his estimate of the               
          value of decedent’s interest in Renier was $825,000, the                    
          calculations in his report, as amended in his trial testimony,              
          indicate that he actually concluded that decedent’s interest was            
          worth $852,000 and apparently made a transposing error.                     

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