Estate of H.A. True, Jr. - Page 187




                                       - 260 -                                        
          value and look to Wyoming law to determine the rights accorded a            
          58.16-percent interest in Black Hills Trucking.                             
              Wyoming law allows the holder of a majority of the shares               
          entitled to vote to control the board of directors, sell                    
          corporate assets, or dissolve the corporation.  See discussion of           
          Wyoming law supra p. 230.  No articles of incorporation or bylaws           
          were introduced in evidence for Black Hills Trucking.  Therefore,           
          we assume that the company’s governing documents do not vary from           
          Wyoming law.  Dave True’s 58.16-percent interest represented a              
          majority of the shares entitled to vote; therefore, Dave True               
          owned a controlling interest in Black Hills Trucking at his                 
          death.  Accordingly, Mr. Kimball should have added a control                
          premium to compute entity value under the guideline company                 
          method.                                                                     
              For the reasons stated above, we reject Mr. Kimball’s                   
          valuation conclusions under the guideline company method.  We               
          need not discuss the merits of Mr. Kimball’s net asset value                
          approach because his controlling interest value equaled that of             
          Mr. Lax, which we have already adopted.  However, we reject Mr.             
          Kimball’s 10-percent lack of control discount to adjusted NAV as            
          of June 4, 1994, because Dave True owned a controlling interest             
          at death.                                                                   
              Turning to respondent’s position, we agree that Dave True’s             
          58.16-percent interest valued at June 4, 1994, is not entitled to           
          a minority discount.  However, we disagree with respondent’s                





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