- 27 -                                         
          the DCF method, before marketability and minority discounts, to             
          be $578,000, or $3.17 per share.19  This determination was made             
          by taking the value he assigned to JM under the income approach,            
          $675,000, and subtracting the value he assigned to the JM                   
          preferred stock, $97,000.  Mr. Stewart then applied a 20-percent            
          minority discount based on studies of control premiums and                  
          consideration of the value control would have had specifically in           
          JM.  Studies of control premiums were used because, in Mr.                  
          Stewart’s opinion, a minority discount equals the algebraic                 
          complement of a control premium.  Mr. Stewart then applied a 35-            
          percent lack of marketability discount, yielding an aggregate JM            
          common stock value of $300,000, or $1.64 per share.                         
               Mr. Stewart gave approximately equal weight to the market              
          approach and the income approach, which results in an aggregate             
          value of JM common stock of $440,000, or $2.41 per share.                   
               To determine the value of the Specialty common stock under             
          the market approach, Mr. Stewart took the overall value he                  
               19In the proposed findings of fact, respondent states that             
          the prediscount value of the aggregate JM common stock on a                 
          minority basis is $568,000, instead of the $578,000 as listed in            
          Mr. Stewart’s valuation findings.  Respondent used the $568,000             
          figure in determining a price per share of $3.11.  This error was           
          most likely due to the fact that Mr. Stewart adjusted his figures           
          posttrial to correct an error in not subtracting projected                  
          capital expenditures in determining the values of JM and                    
          Specialty stocks under the income approach.  We rely on the                 
          figures as set forth in Mr. Stewart’s findings and note that                
          respondent’s computations appear to be based on an error in                 
          incorporating Mr. Stewart’s adjusted figures into respondent’s              
          brief.                                                                      
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