Estate of H.A. True, Jr. - Page 189




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                                Guideline company      NAV method                     
                                     method          nonmarketable                    
                   Valuation      nonmarketable     minority value of                 
                     date       minority value of   subject interest                  
                                subject interest                                      
                 June 4,           $1,904,000          $3,147,733                     
                 1994                                                                 
                 June 30,          $1,232,149          $2,036,609                     
                 1994                                                                 

              Mr. Kimball then applied a 30-percent weight to the                     
          guideline company method valuation conclusions and a 70-percent             
          weight to the NAV method conclusions, resulting in final                    
          nonmarketable minority values (rounded) for the subject interests           
          of $2,775,000 as of June 4, 1994, and $1,795,000 as of June 30,             
          1994.                                                                       
                      b. Initial and Final Lax Reports                                
              As previously stated, the initial Lax report concluded that             
          a 50-percent marketability discount was appropriate even for a              
          controlling interest in a company because of the substantial time           
          and expense required to sell an interest in the absence of an               
          established market.                                                         
              However, the final Lax report applied no marketability                  
          discounts to Dave True’s 58.16-percent interest in Black Hills              
          Trucking for the reasons described in the Belle Fourche section             
          of this opinion.  See supra p. 235.                                         
                      c. Respondent’s Position                                        
              Respondent relied on Mr. Lax’s final conclusions to argue               
          that a marketability discount would not apply to Dave True’s                





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