- 51 -
conclude that this fair market value analysis in Hakala’s expert
witness report does not lead us to any answer in our quest for
the maximum amount of reasonable compensation from petitioner to
Jack.
b. Estimate of Petitioner’s Discount Rate
Hakala’s next step in his investor returns analysis was to
estimate the discount rate, or “cost of capital”. As Hakala uses
the term, petitioner’s cost of capital is the rate of return that
an investor would expect to realize from an investment in a
16(...continued)
If you’re anxious for to shine in the high aesthetic line as
a man of culture rare,
You must get up all the germs of the transcendental terms,
and plant them everywhere.
You must lie upon the daisies and discourse in novel
phrases of your complicated state of mind,
The meaning doesn’t matter if it’s only idle chatter of a
transcendental kind.
And every one will say,
As you walk your mystic way,
“If this young man expresses himself in terms too deep
for me,
Why, what a very singularly deep young man this deep
young man must be!”
“Patience”, The Complete Plays of Gilbert and Sullivan, pp. 199-
200 (New York: Modern Library).
Under Fed. R. Evid. 702, the justification for the expert
witness is that the expert witness “will assist the trier of fact
to understand the evidence or to determine a fact in issue”. It
is not enough that the expert can communicate with other experts.
The expert should be enough of a teacher or explainer so that the
nonexpert trier of fact can understand the steps in the expert’s
analysis. The nonexpert trier of fact should not have to be a
detective, discovering clues in odd places in the expert’s
report, in order to understand how the expert proceeded from one
step to the next.
Page: Previous 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 NextLast modified: May 25, 2011