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VI. White Stallion
Respondent adopts the final Lax report’s controlling equity
value (using the net asset value method) of $1,139,080 as of
June 3, 1994.
White Stallion operates a dude ranch near Tucson, Arizona,
consisting of 250 acres of land and improvements. During the
period 1989 through 1992, revenues increased from $677,224 in
1989 to $1,042,260 in 1992. The compounded annual growth rate
for the period was approximately 15 percent. Revenues for 1993
showed no substantial percentage growth. Ordinary income
increased during the period from $2,771 in 1989 to $166,922 in
1993.
During the period 1988 through 1993, the company carried
long-term shareholder debt that ranged from roughly $46,000
(early years) to $92,000 (ending balance in 1993).
During the period 1988 through 1994, White Stallion made no
distributions of cash or other property to its shareholders. On
the other hand, shareholders’ contributions to paid-in or capital
surplus slightly increased during the analyzed period.
White Stallion stock has never been traded in public
markets.
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