- 29 -
Matthew Hoffman 62,334 7.61% 1/01/2012
Elisabeth Hoffman 62,333 7.61% 1/01/2012
Total 899,263
Mr. Mitchell discounted the face value of each note plus the
accrued interest thereon. Mr. Mitchell determined that the total
discounted value of the notes payable was $294,434, based on his
appraisal of the promissory notes payable to decedent and Hoffman
Associates.23 Mr. Mitchell also determined that the combined
value of property taxes on the Cathead property and the interest
liability24 which would accrue with respect to additional debt as
a result of the payment of taxes, as of January 1, 2012, would be
$566,99225 and discounted this figure using the same 12.5-percent
23Mr. Mitchell determined that an investor would require a
12.5-percent rate of return for the Clubside promissory notes.
Mr. Mitchell applied the 12.5-percent rate of return to the other
notes payable to determine the total value of the notes payable
as of the valuation date. The following chart sets forth Mr.
Mitchell’s computations:
Note Holder Value at Maturity Fair Market Value
Melissa Hoffman Trust $24,000 $7,858
Matthew Hoffman Trust 24,000 7,858
Elisabeth Hoffman Trust 24,000 7,858
Hoffman Associates 278,147 91,070
Marcia Hoffman 173,063 56,664
Al Hoffman, Jr. 189,053 61,899
Melissa Hoffman 62,333 20,409
Matthew Hoffman 62,334 20,409
Elisabeth Hoffman 62,333 20,409
Totals 899,263 294,434
24Interest was factored into the property tax liability
because Mr. Hoffman was funding the property tax payments.
25This figure consists of $360,000 of property taxes and
$206,992 of interest on the property taxes.
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011