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was not publicly traded; (2) historically, TPC was profitable;
(3) investment risks associated with TPC were moderate; (4) TPC
had consistently paid cash dividends; (5) as of May 2, 1998, TPC
held more than $137 million in net liquid assets; and (6) the
estate owned the single largest block of TPC stock. Respondent’s
expert’s calculation of the $32,393,000 valuation for the
estate’s 20.57-percent stock interest in TPC may be summarized as
follows:
Value of TPC $225,000,000
Multiplied by Estate’s Interest in TPC 20.57%
Prediscounted Value of Estate’s Interest$ 46,282,500
Less 30% Marketability Discount 13,884,750
Value of Estate’s 20.57% Interest in TPC$ 32,393,000*
* $32,393,000 represents the calculation as reflected
in respondent’s expert’s revised report. The
corrected math calculates to $32,397,750.
As indicated, respondent’s expert does not apply a minority
interest discount to the estate’s 20-percent TPC stock interest.
Rather, respondent’s expert states that his discounted cashflow
method of valuation inherently reflects a minority interest in
TPC and therefore that no separate or additional minority
interest discount is appropriate.
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