Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 23

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          dividing the net capitalization rate into the net free cashflow             
          capacity he derived for each of the four different periods, Mr.             
          Hitchner determined capitalized earnings of $2.5 to $4.1 million.           
               Mr. Hitchner calculated that BCC had approximately $2.3                
          million of nonoperating assets by identifying actual nonoperating           
          assets (valued at $433,572) and determining the “excess cash” on            
          hand, which he estimated at $1,869,941.  He derived this figure             
          by comparing BCC’s ratio of cash to assets as of the valuation              
          date with industry standards for the Standard Industrial Code               
          (SIC) category that he believed most closely matched BCC.  He               
          then added this $2.3 million of nonoperating assets to his range            
          of capitalized earnings to yield an income-based value in a range           
          from $4.8 to $6.4 million.  Unlike Mr. Fodor, Mr. Hitchner did              
          not decrease his income-based value by any amount associated with           
          the obligation to repurchase shares held by the ESOP                        
               Mr. Hitchner used two different approaches to determine                
          BCC’s asset-based value:  The adjusted book value approach, where           
          he determined BCC’s book value and then adjusted it to reflect              
          the fair market value of BCC’s machinery and equipment, as                  
          reported in BCC’s internal “value in use” analyses, and the                 
          modified adjusted book value approach, where he made the                    
          adjustments described above and then decreased the value of BCC’s           

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