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a major, well-established, well-run company with relatively few
stockholders, in which a longstanding outside investor is already
present and apparently content.
With regard to the lack of marketability discount, we
believe a 30-percent lack of marketability discount adequately
reflects difficulties the estate and a hypothetical investor
might have in marketing the estate’s 20-percent TPC stock
interest. Indeed, but for the fact that respondent’s expert
allowed a 30-percent discount for lack of marketability, we might
have been inclined to reduce this discount. A discount any
higher would not appear to be justified, particularly in light of
the presence among TPC’s stockholders of a significant outsider
stockholder who already owns a relatively large, minority block
of TPC stock. We also note the dividend-paying history of TPC,
and TPC’s plans, as of May of 1998, to continue its practice of
paying substantial cash dividends, which subsequent-year
dividends would allow a holder of a 20-percent interest in TPC to
recover annually, based on prior-year dividends paid, in excess
of one quarter of a million dollars.
We conclude that the date-of-death value of TPC as an
entity, as of May 2, 1998, is $110,508,000 and that the date-of-
death value of the estate’s 20.57-percent interest in TPC is
$13,525,240, or $27.75 per share.
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