At the time of her death, Carol owned 60% of the stock in Drab Corporation with the balance of the stock held by family members. Drab Corporation's total profits for the past five years are $3,200,000, and the book value of its stock is $2,400,000. If 8.5% is an appropriate after-tax rate of return and goodwill exists, what is a possible value for the stock to be included in Carol's gross estate?

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The Answer of At the time of her death, Carol owned 60% of the stock in Drab Corporation with the balance of the stock held by family members. Drab Corporation's total profits for the past five years are $3,200,000, and the book value of its stock is $2,400,000. If 8.5% is an appropriate after-tax rate of return and goodwill exists, what is a possible value for the stock to be included in Carol's gross estate?

At the Time of Her Death, Carol Owned 60% of the Stock