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GMC C 1977 17,407,946
GMC A 1978 24,814,023
GMC B 1978 12,413,781
GMC C 1978 9,776,662
GMC A 1979 8,521,734
GMC B 1979 6,626,888
GMC C 1979 8,946,893
CMO A-2 6,254,753
CMO A-3 12,511,453
CMO C-4 623,683
Total 428,391,551
Petitioner relies on the expert opinion and testimony of Dr.
Stephen M. Schaefer to determine the value of its favorable
financing. Professor Schaefer received his doctor of philosophy
at the University of London, Faculty of Economics. He currently
serves as a professor of finance at London Business School and
has been a visiting professor at seven universities around the
world. Professor Schaefer has also served on the editorial
boards of numerous publications, published two books, and
published over 30 articles and notes relating to finance and
economics.
Professor Schaefer explained that the benefit of favorable
financing is based on the difference between the interest
payments on an existing debt obligation and the interest payments
made at the prevailing market rate. The value of the favorable
financing benefit equals the present value of this difference.
When debt obligations are exchanged in a free market, the price
paid for the debt instruments equals the fair market value of the
future cashflows. The market price reflects uncertainties; for
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