Peter S. Peracchio - Page 21

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          corresponding asset category of the partnership.  At trial, he              
          testified that medians “in my opinion are often more relevant               
          [than means] because it takes outliers out of the equation”.                
          However, Mr. Dankoff’s written report suggests that he may have             
          accounted for outliers (by excluding them from his samples) prior           
          to determining sample medians:  “After adjusting for outliers and           
          asset homogeneity with the subject assets, we then calculated a             
          weighted average median discount”.  In any event, Mr. Dankoff               
          eventually conceded at trial that “I don’t think I have a good              
          reason as to why one was better than the other, and I think                 
          either one [median or mean] could have been used.”  Because it              
          seems more straightforward to us to account for obvious outliers            
          by excluding them from the samples in question, we utilize the              
          mean discount from each of our samples as the minority interest             
          discount factor for each corresponding asset category of the                
          partnership.                                                                
                    g.  Minority Interest Discount Factor for Each Asset              
                    Category                                                          
               Based on the methodology described above, we conclude that             
          the appropriate minority interest discount factors for the                  
          partnership asset categories are as follows:                                
                    Asset Type                    Discount Factor                     
               Cash & money market funds               2.0%                           
               U.S. Government bond funds         6.9%                                
               State & local bonds (MI)      3.5%                                     
               Natl. Muni bond funds              3.4%                                






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Last modified: May 25, 2011