- 15 -
The following chart summarizes the positions taken in the
expert reports:
Empire MPI AE
(Nammacher) (Oliver, Hassan) (Vandervliet,
Kettell)
Valuation methods Capitalization ofDiscounted cash Capitalization of
income flow; guideline income; guideline
company company;
guideline
transactions
Capitalization 15.57% for 1999 16.5% for 1999; 16% for 1999; 15%
rates 15.5% for 2000 for 2000
Tax-affecting Reduced net Reduced net None
earnings by 40% earnings by 35%
Executive Reduced expenses None Reduced expenses
compensation by $1.4 million by $1.3 million
adjustment for 1998; for 1999,
compensation compensation
adjusted 8% per adjusted 5% per
year for 1994-98 year for 1994-
2000
Discounts 15% minority 40% lack of 20% minority
interest and lackmarketability; 5%interest and lack
of control for lack of voting of control for
nonoperating power operating assets;
assets; 35% lack 15% minority
of marketability interest and lack
of control for
nonoperating
assets; 20% lack
of marketability
1999 per-share $620 $528 $1,004
value
2000 per-share None given $584 $1,026
value
We may accept or reject expert testimony according to our
own judgment, and we may be selective in deciding what parts of
an expert’s opinion, if any, we accept. Helvering v. Natl.
Grocery Co., 304 U.S. 282, 295 (1938). In general, we found AE’s
report and the testimony of Vandervliet and Kettell to be more
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011