Estate of Etta H. Weinberg - Page 20

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             date.  Dr. Kursh reasoned that the aggregate distributions               
             made during 1992 were at the minimum level of distributions              
             that a potential buyer would anticipate.  Applying the                   
             discount rate of 9.7 percent to the decedent's 1992                      
             distributions of $202,000, Dr. Kursh computed the value of               
             the decedent’s interest in Hill House of $2,082,474 (i.e.,               
             $202,000 � 9.7 percent).                                                 
                  Dr. Kursh then applied a marketability discount.  In                
             order to determine the amount of this discount, he used the              
             Quantitative Marketability Discount Model (QMDM) that is                 
             described in a book written by Mr. Z. Christopher Mercer                 
             entitled Quantifying Marketability Discounts (1997).  The                
             QMDM is an economic model that attempts to relate the                    
             present value of the future returns of an investment in the              
             form of distributions and capital appreciation to the                    
             amount an investor is willing to pay for the investment.                 
             The QMDM incorporates various factors, including:  The                   
             expected distribution yield (i.e., the expected annual                   
             return through distributions), the expected growth rate of               
             value (i.e., the expected growth in the underlying asset                 
             value), the required holding period return (i.e., the rate               
             of return on similar investments), and the assumed holding               

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