ayaz_mahmud369

ndzhai,
I agree with you ! It is common sense that “salary” shall be mentioned on before-tax basis
in practice and in real world, unless otherwise it is mentioned specifically on after-tax basis.
On the other hand, the assumption that the current market value of 10M Reston stock will remain unchanged in 7 years is very un-realistic.
Frankly speaking, I don’t have any confidence on CFAI’s calculation of return objective due to their random assumptions, vague statements and no definite rules as well.