-79-
redemption payments payable under the certificate of designation
for the decedent’s series A preferred stock were as follows:
($1,512.0629 + $181.2404) x 511.161 = $865,550.60
($1,701.0708 + $203.8955) x 511.161 = $973,744.47
($1,913.7047 + $229.3824) x 511.161 = $1,095,462.50
2. Discounted Amounts
In Trompeter I, we used the following formula to discount
each of the redemption payments as of the applicable valuation
date: P x (1 + i/n)-y. In this context, “P” equals the value of
the series A preferred stock at the time of redemption (i.e., its
liquidation value plus any unpaid accrued dividends not included
in the liquidation value); “i” equals the discount rate; “n”
equals the total number of days in the year; and “y” equals the
total number of days over which the discount is compounded. In
other words, we used in Trompeter I the basic formula for
computing present value in the case of interest that is
compounded annually, see generally Thorndike’s Compound Interest
and Annuity Tables 19 (1982), as adjusted to reflect our belief
that the discount rate should be compounded daily consistent with
our determination of the redemption payments. Now, consistent
with our redetermination that the payment of dividends is
compounded annually rather than daily, we modify our discount
formula by deleting the “n” and using “y” to refer to a fraction
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