Estate of Paul Mitchell, Deceased - Page 20




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          per year.  The second assumed compensation of $2.5 million, and the         
          third assumed compensation of $12 million in 1990 and $17 million           
          thereafter.                                                                 
               Another significant difference in the experts’ analyses was            
          the discount rates used by the experts in their discounted cashflow         
          analyses.  Messrs. Hanan and Weiksner determined that JPMS’s                
          weighted average cost of capital (WACC) was 15 percent.  Mr. Hanan          
          used the 15 percent WACC as his discount rate.  Mr. Weiksner used           
          discount rates between 17 and 21 percent to take into account               
          JPMS’s smaller size.  Mr. McGraw determined JPMS’s WACC at 24.7             
          percent and used a discount rate of 25 percent.  Mr. McGraw                 
          attributed 3 percent to JPMS’s smaller size and 6 percent to                
          reflect individual risk associated with JPMS.  The individual risk          
          specified by Mr. McGraw was the limited number of prospective               
          purchasers for the stock due to the size of the investment, the             
          minority interest status of the block of stock, and the control             
          exercised by Mr. DeJoria.                                                   
               The enterprise values (in millions of dollars) determined by           
          the experts under their comparable companies and discounted                 
          cashflow analyses are shown in the following table:                         













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