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determined that this factor indicates a discount at the lower end
of the indicated range, not a discount below that range.
Mr. Herber also notes that the banking industry is highly
regulated and banking companies are “transparent”; i.e.,
shareholders have access to a great deal of information regarding
banking companies’ performance. He claims that these factors
support a lower minority interest discount. Mr. Herber, however,
determined the indicated range of 18.4 to 19.6 percent from his
own study of transactions involving banking companies. Because
the indicated range presumably takes into account issues relating
to the regulation of banking companies, we are unpersuaded that
these factors support a discount for decedent’s shares lower than
the indicated range.
Mr. Herber also claims that RBI is well capitalized, has
high returns on equity and assets, maintains a very high rating
in comparison to other banking companies and has offered a
“favorable dividend” over the past 5 years. He claims that these
factors reduce risk and enhance the attractiveness of a minority
position in RBI relative to other banking companies and support a
lower discount than the indicated range of 18.4 to 19.6 percent.
Mr. Herber does not attempt to quantify the effect of these
additional factors, and he provides no independent evidence or
verification regarding the comparison of RBI and other banking
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