Estate of Etta H. Weinberg - Page 18

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             selected partnerships that owned real estate (residential                
             and/or commercial), had low debt or leverage, had cash                   
             flows greater than their distributions and capital                       
             expenditures, and had assets that were valued by                         
             independent appraisers.  Dr. Kursh's criteria produced 16                
             comparables.  According to his report, investors in these                
             16 comparables “anticipated annual returns from cash                     
             distributions ranging from 9.31 percent to 11.58 percent.”               
             Dr. Kursh selected the midpoint of those yields, 10.45                   
             percent, as the rate of return an investor would require                 
             for a minority interest investment in a limited partnership              
             with the characteristics of the comparables.                             
                  Dr. Kursh then made three adjustments to the average                
             yield of the comparables to take into account the                        
             particular characteristics of Hill House.  First, Dr. Kursh              
             added 50 basis points to account for the fact that Hill                  
             House owned only one piece of property and thus lacked                   
             diversity, while the comparables owned multiple pieces of                
             property.  Second, Dr. Kursh subtracted 100 basis points to              
             account for the fact that the general partner of Hill House              
             was also a limited partner.  According to Dr. Kursh, this                
             commonality of interest would tend to ensure cash                        

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