Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 21

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          or separation.  This yielded a total company income-based value             
          of $5,803,163.                                                              
               Mr. Fodor used the capitalized excess earnings method to               
          determine that BCC’s asset-based value equaled $8,678,805 as of             
          the valuation date.  Mr. Fodor then subtracted from the net asset           
          value the $750,000 estimate of the obligation to repurchase BCC             
          shares from ESOP participants to reach a final asset-based value            
          of $7,928,805.                                                              
               Mr. Fodor weighted the income-based value of $5.8 million at           
          75 percent and the asset-based value of $7.9 million at 25                  
          percent, to yield a final blended value of $6 million (rounded)             
          for 100 percent of the shares of BCC.  Multiplying this value by            
          decedent’s 83.2-percent interest in BCC resulted in a                       
          corresponding $4,992,537 fair market value for decedent’s 43,080            
          shares, as of the valuation date.  Mr. Fodor did not include the            
          life insurance proceeds BCC received on decedent’s life in either           
          his income- or asset-based approach on the grounds that those               
          proceeds were offset by BCC’s obligation to redeem decedent’s BCC           
          stock.  Nor did he apply any discounts or premiums in valuing the           
          block of shares at issue.                                                   
               C.   Respondent’s Expert, Mr. Hitchner                                 
               Mr. Hitchner is accredited in business valuation with the              
          American Institute of Certified Public Accountants and is an                

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