With a $5 million dollar portfolio. The first year you earn a 25% capital gain and earn
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With a $5 million dollar portfolio. The first year you earn a 25% capital gain and earn $250,000 income at year-end. You spend $200,000 and reinvest the rest. The second year your capital gain is -10% but you earn $250,000 income again at year-end, but you spend $400,000. What is the $ value of your portfolio at the end of the second year? And What is the investment compound total annualized return on your portfolio over the two years, ignoring consumption?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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