Estate of Georgina T. Gimbel, Deceased, Janet G. Rogers, JoAnne M. Gimbel, and Thomas W. Gimbel, Co-Executors and Co-Trustees - Page 23

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          dribble-out period.  Below we analyze the experts’ methods for              
          valuing the estate’s Reliance shares under the dribble-out                  

          (1) Range Report                                                            
               By multiplying the estate’s Reliance shares by the $20.625             
          valuation date closing trading price (see supra note 5), Range              
          calculates the dribble-out sales proceeds for the estate’s                  
          Reliance shares to be $73,186,781.6  Using a risk-free rate of              
          return, Range then discounts the $73,186,781 sales proceeds to a            
          $65,764,163 present value as of the June 5, 2000, valuation date.           
               Range further concludes that a hypothetical investor                   
          dribbling out the estate’s Reliance shares would purchase put               
          options to enable the Reliance shares to be sold at the valuation           
          date price throughout the dribble-out period.  Range calculates a           
          $10,494,345 cost for put options that would allow the Reliance              
          shares to be sold for $20.625 a share throughout the entire                 
          dribble-out period.  Range then subtracts from his $65,764,163              
          present value for the estate’s dribbled out Reliance shares his             
          $10,494,345 estimated cost for the put options, resulting in a              
          net dribble-out discounted value of $55,269,818, reflecting a               

               6 Range’s report considers only the 3,548,450 Reliance                 
          shares held in trust.  On the estate’s estate tax return,                   
          however, the estate applies to all of the estate’s 3,601,267                
          Reliance shares the same discount that Range applies to the                 
          Trusts’ 3,548,450 shares.                                                   

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Last modified: May 25, 2011