(22% - 3%) / 30% = 0.633.

The Bank of Japan and the U.S. Fed don't have a formal inflation target.

Or when the carrying amount of an asset is more than its tax base.

Remember that the dollar-weighted rate of return uses the IRR equation in the determination of its answer. Further, the dollar-weighted rate of return is another name for the IRR equation, and this nomenclature is commonly used within the field of investment management. The logic behind this characterization is the fact that the IRR equation takes into account both the timing and scale of all project cash flows. In the determination of the dollar-weighted rate of return calculation, the first step should be to identify the cash flows for each period. This process is illustrated as follows:
t0: -20,000 shares purchased * $0.90 per share] = [$18,000]
t1: -50,000 shares purchased * $1.13 per share] ] = [$56,500]
t2: -50,000 shares purchased * $1.20 per share] = [$60,000]
t3: [(20,000 shares sold * $1.22 per share) + (80,000 shares sold * $1.20) + (20,000 shares sold * $1.17 per share)] = $143,800
Now that the cash flows have been determined, incorporating this information into your calculator's cash flow worksheet and solving for IRR will yield a dollar-weighted rate of return of 4.02% for this investment.

Convertibles are particularly attractive to those investors who want to participate in the rise of hot growth companies while being insulated from a drop in price should the stocks not live up to expectations.