- 42 - of May 2, 1998, TPC appeared to be well situated on the Internet, and TPC’s future as to its Internet operations appeared good, if not, in the words of TPC’s president, “great”. As stated in the estate’s experts’ report, as of May of 1998, TPC “appears to be in a strong overall financial position when compared to the industry. [TPC] has more liquidity, no leverage, and operates more profitably than the median industry. Based on the financial analyses of [TPC], the business has less financial risk than does the median company in the same industry.” The use by the estate’s experts of a 12-percent technology- related risk factor, particularly in light of their failure to project any additional income to be produced from technology- related expenditures, seems to us inappropriate and unjustified. Supporting our conclusion that TPC’s risks relating to the Internet and technology do not support a 12-percent risk factor, we note that, during its 1998 fiscal year, TPC paid out cash dividends to its stockholders in excess of $7 million, a significant increase over total cash dividends paid out to stockholders in prior years and inconsistent with any management perception that, as of May of 1998, or in the near future, TPC faced extraordinarily risky additional Internet- and technology- related expenditures. TPC’s 1998 cash dividends, particularly in light of the lower level of stockholder dividends that had been paid in priorPage: Previous 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 Next
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