Estate of Josephine T. Thompson, Deceased, Carl T. Holst-Knudsen and the Bank of New York, Executors - Page 51

                                       - 51 -                                         
               Our calculation of the fair market value of TPC as an entity           
          and of the estate’s 20.57-percent interest in TPC is set forth              
          below:                                                                      

                    Capitalization Rate                  18.5%                        
                    Minority Discount                       15%                       
                    Marketability Discount                  30%                       

                    TPC’s Sustainable Net Income                                      
                                                      Pretax                         
                     Year                             Income                          
                   1993                                $ 13,562,000                   
                    1994                               11,396,000                     
                    1995                          7,817,000                           
                    1996                               11,874,000                     
                    1997                              15,843,000                      
                    Total Pretax Income               $ 60,492,000                   
                    Divided by Number of Years        5                               
                    Average Pretax Income              $ 12,098,000                   
                    Less Estimated 35% Taxes          (   4,234,000)                  
                    Sustainable Net Income             $  7,864,000                   
                    Divided by Capitalization Rate    18.5%                           
                    Subtotal                           $ 42,508,000                   
                    Plus Nonoperating Assets          68,000,000                      
                    Value of TPC                       $110,508,000                   

                    Value of Estate’s 20-Percent Stock Interest                       
                    Value of TPC                            $110,508,000              
                    Multiplied by Estate’s Percent Interest 20.57%                    
                   Subtotal                                $ 22,731,496              
                    Less 15% Minority Discount              3,409,724                 
                   Subtotal                                $ 19,321,771              
                    Less 30% Marketability Discount         5,796,531                 
                    Value of Estate’s 20% TPC Interest      $ 13,525,240              
                                   Per-Share Value          $27.75                    

               Taking into account all of the evidence before us and the              
          arguments of the parties, we believe that our above valuation               

Page:  Previous  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  Next