- 24 -
24.5-percent overall discount from the valuation date trading value.
(2) Kimball Report
By multiplying the estate’s 3,601,267 Reliance shares by the
$20.8125 valuation date trading price, Kimball calculates the
dribble-out sales proceeds of the estate’s Reliance shares to be
$74,951,369. To the $74,951,369, Kimball adds the $1,083,656 in
estimated dividends to be paid on the estate’s Reliance shares
during the dribble-out period, resulting in $76,035,025.7
Kimball then discounts the $76,035,025 to present value
using a discount factor equal to a 13.2-percent expected rate of
return on Reliance equity. Applying the 13.2-percent discount to
$76,035,025, Kimball calculates a $61,910,012 valuation date
present value for the estate’s Reliance shares, reflecting a
17.4-percent overall discount from the valuation date trading
price.
(3) Nunes Report
Under the dribble-out method, Nunes values only 1,800,364
shares (50 percent of the estate’s 3,601,267 Reliance shares
remaining after the hypothetical repurchase of 50 percent of the
7 Instead of including in his calculation of future value
estimated future dividends that would be paid with respect to the
estate’s Reliance shares during the dribble-out period, Range
includes estimated Reliance dividends in the pricing of the put
option contracts.
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