You need to go back up the page - but here it is again:-
Quote:
OK Bose/Chilli etc.
Just before I stop banging my head against the wall a last question :-
2 otherwise identical groups with the same £20,000 value aircraft, the second having a £4,000 fund. According to your arguments both groups 1/4 shares will be worth £5,000 - so which group would you buy into, the first at £4,950 (obviously a bargain), or the second at £5,300?
And I certainly cannot see how I am using cash to buy more cash the way you say.
Sorry I don't understand the question. If you are asking what I would pay to buy into the groups. Well group A I would be offering around £4k for the share and Group B would probably get closer to the £4700 region. What I would pay for a share is nothing to do with the discussion we are having. But I would certainly not pay over the 1/4 value of the aircraft.
Say I pay your £5.3k figure to "buy" 1/4 of the engine fund on top of the value of the aircraft and the engine goes tits up I have paid for 1 quarter of the aircraft and I have paid £300 towards someone else's flying and I still have to pay 1/4 of the repair bill.
Better idea...... I pay 1/4 the value of the aircraft. The engine goes bang, the group uses the money in the bank to pay the repair bill and I am liable for 1/4 of the balance after that money has been spent. So the money in the bank covers the wear and tear that has already occurred which is why it was collected in the first place and I cover my % of the bill.
I am glad I am not in group........