"wabbleknee" wrote:
I realize that it is not an excel question yet,
however, I want to get the method correct first
I cannot say with impunity that I am doing anything "correctly". I have no
professional experience with this.
"wabbleknee" wrote:
Here is the before % interest and the " 15% adjusted" % interest.
Wait a minute: "15% interest" is a lot different from "15% added share
increase" as you wrote before.
As I understood your original posting, the 15% is not an interest per se,
but an agreement of an exchange of "consideration" (in contract terms). "If
you give me a loan, I will give you 15% more in distributions than you
normal share".
Now, I wonder if in order to do the correct calculations, we need more
information, specifically:
1. The monetary __amount__ contributed (invested) by each investor.
2. The monetary __amount__ of __interest__ that investor "a" earned on the
loan.
"wabbleknee" wrote:
I also used the same method as you originally, (1+15%)
however You will note for "a" the adjustment went from
22.73% to 37.68%, adding 14.95%?? directly.
[....]
a 22.73/37.68
b 2.27/1.82
c 1.99/1.59
d 5.68/4.55
e 1.42/1.14
f 2.84/2.77
g 0.57/0.45
h 22.73/18.18
I 22.73/18.18
j 17.05/13.64
I get very different percentages. Rather than try to understand how you
might have calculated your adjusted percentages, I suggest that you simply
look at my calculations.
Download my file "cap distrib wabbleknee.xls",
https://www.box.com/s/4gg4n9s16samryn0i95p.
Pay close attention to the cell comments.
I consider the "unrounded" method to be more correct.
But in this case, the "rounded" method does not change things substantially.
Let me know if you have any questions / comments.