wrote
John bought income property A in London in 2005
for 100 pounds, it makes 20 pound per year,
Dave bought income property B in Liverpool in
2006 for 60 pounds, it makes 15 pound per year,
Larry bought income property C in Manchester in
2007 for 75 pounds, it makes 17 pound per year.

NOW, the 3 want to become partners where the pie
now is A+B+C and income is 52 pound per year!

How much ownership each gets?
How much income each gets per year?

"Tim" wrote:
Is this a Homework question?!

Anyway, obviously John would get about 38% ownership so
that he still gets 20 pounds per year, Dave would get about
29% ownership so that he still gets 15 pounds per year, and
Larry would get about 33% ownership so that he still gets 17
pounds per year. Unless they decided to be unfair, of course...

"Ronald Raygun" wrote
Doing it differently would not necessarily
be unfair, just fair in a different way.

Although we are told that the total income is unchanged at 52
pounds per year, and we can perhaps assume that this means
the income generated by each property is also unchanged at
20/15/17 pounds per year, we are not told whether and how
the properties' value has changed since they were bought.
One fair way to split ownership is in proportion to the value...

Well, obviously (in such an idealised example!), property A
will have fallen in value to 80 pounds in 2006 and then property
A will have increased in value to 88.24 pounds in 2007 and
property B will have increased in value to 66.18 pounds in 2007.
[They will also each have changed by the same factor from 2007 to 2008.]

Thus the fair ownership proportions (in proportion
to the values) are still: 88.24 / 229.41 = 38%,
66.18 / 229.41 = 29% and 75.00 / 229.41 = 33%.