The "fundamental" indices pioneered by Rob Arnott at Research Affiliates weight stocks by sales, dividends, book value and earnings.
A second approach, dubbed "fundamental indexing", is to weight each company by its financial characteristics—sales, dividends, assets or cashflow.
It calculates that the after-tax proceeds from that and other stock sales, dividends and about $115m in salary since 1991 would be worth about $540m if the money was invested in a basket of stocks, bonds, hedge funds, commodities and cash.
From there you will need to fill out your tax information, such as your company's gross sales, dividends, interests, royalties, rents and gains/losses.
And there is a second charge of 7.5% levied on any returns that investors make above their original investment, whether through the proceeds of a sale, dividends or "other payments from the startup to the investors".
(4) Asset sales for dividend payments are prohibited.
The tax would apply to gross sales less dividends paid and all purchases from other companies, including investment goods.
Research Affiliates has an index that uses four "fundamental measures" relating to sales, profits, dividends and asset, or book, value.These ideas have their critics.
The firm's president, Hamilton E. James, told analysts during the earnings call that possible ways to exit investments included more I.P.O.'s, outright sales and special dividend payments.
To test the four programs, a sample set of figures was entered for a single filer with these tax considerations for 2001: salary income and tax withholding reported on form W-2, four security sales, interest and dividend income and itemized deductions for state and local taxes, mortgage interest and charitable contributions.
