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Court’s Analysis Capitalization Net Asset Value
Distributions during 1990 $650,000.00 Value of apartment complex $10,050,000.00
Distributions during 1991 600,000.00 Other assets 840,075.00
Distributions during 1992 800,000.00 Total liabilities 557,306.00
Total distributions 2,050,000.00 Net Asset Value of Hill House 10,332,769.00
Average annual distributions 683,333.33
Percentage interest 0.25235 Percentage interest 0.25235
Share of average annual distributions 172,439.17 Share of Net Asset Value 2,607,474.26
Average yield of 16 comparables 10.45%
Plus: Adjustment for lack of diversity 0.50%
Less: Adjustment for commonality -1.00%
Less: Adjustment for distressed sales -.025% _________
1,392,391.25
Percentage yield 9.70% Less: Discount of 53.4% approach
Value of Hill House before marketability discount 1,777,723.40 Value of Hill House before marketability discount 1,215,083.01
Weight of capitalization approach _______0.75% Weight of net asset value approach 0.25
Fair market value of the subject limited partnership interest 1,333,292.55 303,770.75 $1,637,063.30
Less: Marketability discount of 20% 327,412.66
Fair market value of the subject limited partnership interest 1,309,650.64
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