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required the use of most of Reliance’s available cash and then
remaining balance in Reliance’s $200 million outstanding line of
credit.
Shortly before the valuation date, Reliance’s board of
directors increased Reliance’s per share quarterly dividends from
5 to 5.5 cents.
On the valuation date, Reliance shares reached a public
trading price high of $21.25, a low of $20.375, and averaged
$20.8125 per share (the valuation date trading price).
On the valuation date, 18,300 shares of Reliance stock were
publicly traded. In the 10 weeks preceding the valuation date,
average daily trading volume in publicly traded Reliance shares
was approximately 25,000 shares.
Based on the $20.8125 valuation date trading price for
publicly traded Reliance shares, multiplied by the total
27,786,030 shares of Reliance common stock outstanding, as of the
valuation date Reliance had an equity market capitalization of
approximately $578 million.
As of the valuation date, an active market for options and
other hedging instruments and derivatives relating to Reliance
stock did not exist.
Restricted Nature of Decedent’s Reliance Stock
In addition to the fact that almost all of the estate’s
Reliance shares were unregistered, due to the large number of
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Last modified: May 25, 2011