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In her revised report, Ms. Walker relied on both her market-
based and her income-based results to arrive at her final opinion
on the value of the Demco stock. Giving these methods equal
weight (and after rounding), Ms. Walker stated in her revised
report that in her opinion, the value of the Demco nonvoting
common stock was $192.20 per share on the date of the gifts.
Ms. Walker’s Testimony
Although Ms. Walker’s revised report was more recent than,
and incorporated the conclusions of, her original report, Ms.
Walker did not disavow her original report at trial. To the
contrary, Ms. Walker testified that it remained her opinion that
her original report’s $211.20 conclusion was a reasonable
indication of fair market value. She further observed that
valuation is not an exact science; as she saw it, her revised
report simply indicated that one could justify a lower value than
her original report’s $211.20 value, if one chose to do so.
Respondent’s Expert’s Report
Respondent primarily relies on the February 1999 report of
Gary L. Schroeder to support respondent’s position.21 Mr.
21 Mr. Schroeder had prepared an earlier version of his
report in January 1996; respondent relied on that report to
prepare the statutory notices. Mr. Schroeder’s 1996 report had
concluded that the overall value of the gifts was $260.13 per
share, the same amount asserted in the statutory notices. Mr.
Schroeder’s February 1999 report concluded that the overall value
was $273.99 per share.
(continued...)
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