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law. At his death, Dave True’s 34.235-percent interest did not
represent a majority of the shares entitled to vote. Thus it did
not give him the power to sell corporate assets or to dissolve
the corporation entirely. However, it could have given him a
plurality in electing board members, which would have allowed him
to influence distribution policies.
On this record, we find that a 15-percent minority discount
is appropriate for Dave True’s interest in White Stallion.
2. Marketability Discounts
a. Kimball Report
Mr. Kimball treated the subject interest in White Stallion
as not being readily marketable for the same reasons described in
the Belle Fourche section of this opinion. See supra pp. 233-
234. Accordingly, Mr. Kimball applied a 35-percent marketability
discount to arrive at nonmarketable minority value of $592,123 as
of June 4, 1994.
b. Initial and Final Lax Reports
As previously described, see supra pp. 280-281, the initial
Lax report showed a 45-percent marketability discount, whereas
the final Lax report indicated a combined minority and
marketability discount of 60 percent. Thus, nonmarketable
minority values derived by the initial and final Lax reports as
of June 3, 1994, were $160,860 and $155,986, respectively.80
80The final Lax report incorrectly computed the
(continued...)
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