A private equity fund is considering an acquisition. Using the data below, calculate the maximum amount of equity the fund would be willing to invest at entry, if the minimum IRR required by the fund is 20.0%. Enter your answer as a positive number, rounded to 1 decimal place, e.g. 1000.0 Exit year assumption LTM EBITDA Forecast EBITDA in exit year Exit multiple Debt / EBITDA at exit 5 years 400.0 750.0 7.0x 3.0x

A private equity fund is considering an acquisition. Using the data below, calculate the maximum amount of equity the fund would be willing to invest at entry, if the minimum IRR required by the fund is 20.0%. Enter your answer as a positive number, rounded to 1 decimal place, e.g. 1000.0 Exit year assumption LTM EBITDA Forecast EBITDA in exit year Exit multiple Debt / EBITDA at exit 5 years 400.0 750.0 7.0x 3.0x

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Consider the following information for the Alachua Retirement Fund, with a total investment of $4 million. The market required rate of returnis 12%, and the risk-free rate is 6%. What is its required rate of return? Stock Investment Beta A $500,000 1.2 B 500,000 -0.4 C 1,000,000 1.5 D 2,000,000 0.8 Total 4,000,000 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of retums over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to 1 decimal place.) Required: A hedge fund with $0.7 billion of assets charges a management fee of 3% and an incentive fee of 20% of returns over a money market rate, which currently is 6%. Calculate total fees, both in dollars and as a percent of assets under management, for portfolio returns of: (Enter your answers in millions rounded to…
Suppose at the start of the year, a no-load mutual fund has a net value of RM27.15 per share. During the year, it pays its shareholders a capital gain and dividend distribution of RM1.12 per share and finishes the year with NAV of RM30.34. Required: a. b. If at the end of the year, the fund is selling is selling at 5% discount, what is the rate of return? C. What is the return to an investor who holds 2000 shares of this fund in his retirement account? d. Differentiate between open end and closed end funds. Assume at the end of year, the company change its policy and charge. 12b-1 fees of 2%, What is the rate of return?
Mr. Aiman, Treasurer of AJ Finance Berhad, has just completed a Maturity Bucket Analysis based on the a 6-month horizon. a) If the market expectation is increase in interest rates, find the maturity bucket should Mr. Aiman, worries most about. Explain why the particular bucket matters. b) Outline an appropriate hedge strategy for Mr. Aiman,.
The Treasury bill rate is 3% and the market risk premium is 8%. a. What are the project costs of capital for new ventures with betas of 0.60 and 1.15? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Beta Cost of Capital 0.6 % 1.15 % b. Which of the capital investments (Project P,Q,R,S,T) shown in image have positive (non-zero) NPV's? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
The Closed Fund is a closed-end investment company with a portfolio currently worth $245 million. It has liabilities of $12 million and 17 million shares outstanding. a. What is the NAV of the fund? (Round your answer to 2 decimal places.) b. If the fund sells for $10 per share, what is its premium or discount as a percent of net asset value? (Input the amount as a positive value. Round your answer to 2 decimal places.)
answer must be correct or i will give down vote
Mansukh
Analyze the following three years of data relating to the MoMoney Mutual Fund, . It should report the amount of dividend income and capital gains distributed to the shareholders, along with any other changes in the fund's net asset value (b = 0.5). (Click the icon here ☐ in order to copy the contents of the data table below into a spreadsheet.) 2019 2018 NAV (beginning of period) ? ? 2017 $35.56 Net investment income 0.64 0.74 0.56 Net gains on securities 5.48 4.52 - 3.41 Dividends from net investment income 0.64 0.56 Distributions from realized gains 1.61 1.96 0.51 1.44 a. What is the total income from the investment operations? b. What are the total distributions from the investment operations? a. The total income from investment operations in 2019 is $ The total income from investment operations in 2018 is $ (Round to the nearest cent.) (Round to the nearest cent.) (Round to the nearest cent.) The total income from investment operations in 2017 is $ b. The total distributions from…
None
Subject:- finance
a. You expect a tax-free municipal bond portfolio to provide a rate of return of 4.5%. Management fees of the fund are 0.65%. What fraction of portfolio income is given up to fees? (Round your answer to 1 decimal place.) Bond fund b. If the management fees for an equity fund also are 0.65%, but you expect a portfolio return of 17.0%, what fraction of portfolio income is given up to fees? (Round your answer to 1 decimal place.) Equity fund % O Bond fund O Equity fund % c. For which fund might management fees be a bigger factor in your investment decision?

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