# How To Learn & Test MOAC

Create a new Manual Asset and select: 

* Asset Sub-Type Securities 
* Quantity 10,000 
* Price $10 
* Current Yield 5%

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NOTE: To learn and test MOAC it is highly recommended to use simple round numbers  (and keep Reinvest Income OFF initially).
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Click Save. You will now have a dividend "stock" asset showing $100,000 in Current Value. 

Now test the following scenarios in MOAC: 

1. Annual Appreciation 0%. Yield Growth Rate 0%. Results "Yield" stays the same every year. Reasonable as stock price and dividend per share have no change. Yield should be the same.
2. Annual Appreciation 5%. Yield Growth Rate 0%. Results "Yield" goes down every year. Reasonable as if stock price goes up and dividend per share has no change. Yield should go down.
3. Annual Appreciation 2%. Yield Growth Rate 5%. Results "Yield" goes up +3% every year. Reasonable as if dividend per shares goes up faster than stock price. Yield should go up.
4. Annual Appreciation 5%. Yield Growth Rate 5%. Results "Yield" stay the same every year. Reasonable as stock price and dividend per share increase at the same pace. Yield should be the same.
5. Annual Appreciation 5%. Yield Growth Rate 2%. Results "Yield" goes down -3% every year. Reasonable as if stock price goes up faster than dividend per share. Yield should go down.

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NOTES: 

1. Current Yield is used to calculate a starting nominal $ value of (dividends) paid, it is not used as an absolute %. Ie; Price = $10 x Current Yield = 5% in Results will be Yield = 5% and Income = $.50 cents.
2. Results "Yield" will only increase annually (in % terms) IF Yield Growth Rate field is also used.
3. Otherwise, the nominal $ value of the dividend will remain the same as year 1 (year 1 = 5% & $.50, year 2 = 5% & $.50, year 3 = 5% & $.50)
4. If Annual Appreciation is used (ie; 10%) it would cause the Yield to go down each year while nominal $ amount remains constant (year 1 = 5% & $.50, year 2 = 4.5% & $.50, year 3 = 4.05% & $.50)

In order to reproduce realistic results of a blue chip dividend growth company (ie; JNJ, KO, MCD, MO, etc aka "High Growth" Compounder) user will have to enter values in all 3 fields to simulate real world results:

* Current (Dividend) Yield = 5%
* Yield Growth Rate 5%
* Annual Appreciation 5%

Would cause Yield to increase by 5% annually, nominal $ paid to increase by 5% annually, and share price to increase by 5% annually.
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