Calculating NAV A fund has a market value of securities of $860 million, cash and receivables of $29 million, current liabilities of $26 million and has 19 million fund shares outstanding. What is the fund's NAV per share? Multiple Choice о O O о $48.16 $46.79 $47.62 $45.42
Q: Cisco is considering the development of a wireless home networking appliance, called HomeNet. The…
A: In the NPV analysis, we compute the present value of all future benefits. This present value is then…
Q: Nonconstant Dividend Growth Valuation Simpkins Corporation does not pay any dividends because it is…
A: The dividend discount model refers to the valuation of the stock based on the future dividends it…
Q: You are preparing to produce some goods for sale. You will sell them in one year and you will incur…
A: P - Current cost of goods i.e. $86,000r - Cost of capital i.e. 7.3%t - Period i.e. 1 YearTo…
Q: msider an organization that has Earnings Before Tax of $100,000. Assume amortization ex organization…
A: Cash flow is the money available after making payment of all expenses including taxes and…
Q: A loan officer at your bank approved your application for a two million pesos business loan. You…
A: Loan time period, also known as loan tenure or loan term, refers to the specified duration over…
Q: Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 1 2 3 4 5…
A: Capital budgeting is a process used by companies to evaluate and make decisions regarding…
Q: What is the value of this company?
A: We can determine the value of the company using the formula below:
Q: JLB Corporation is attempting to determine whether to lease or purchase research equipment. The firm…
A: We have to use excel and its functions to compute the required answers. The cost of leasing and…
Q: Present value of complex cash flows) How much do you have to deposit today so that beginning 11…
A: The formula for the present value is The amount of money that you have to deposit today is equal to…
Q: A student remarks: "10,000,000 shares of General Motors were sold yesterday on the New York Stock…
A: The primary market and the secondary market are two distinct segments of the financial market where…
Q: You bought one of Colton Manufacturing Companys 5.2 percent coupon bonds one year ago for $1,055.…
A: The real return on investment refers to the profits that an investor earns after they have been…
Q: Sea Side, Incorporated, just paid a dividend of $2.20 per share on its stock. The growth rate in…
A: Current Dividend = $2.2Three year discount rate = 19%Next three year discount rate = 14%Growth rate…
Q: any predicts they will make $17,948 per year over the next 6 years if they spend $14,012 on a…
A: NPV of investment is net value added by project to company and it should be accepted if NPV of…
Q: nder Boomerang, Inc., is considering a new three-year expansion project that requires an initial…
A: Operating cash flows are the cash flow from the core operations of the company after adding non cash…
Q: Affiliate X sells 13,600 units to Affiliate Y per year. The marginal tax rates for X and Y are 20…
A: Affiliate X sells 13,600 units to Affiliate Y per yearmarginal tax rate for X= 20%marginal tax rate…
Q: You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks,…
A: Financial Planning:Personal Financial Planning refers to the process of carefully allocating an…
Q: Sly Stallone Systems is considering a project that has the following cash flow and cost of capital…
A: Cost of Capital = r = 9%Cash Flow for year 0 = cf0 = -$1000Cash Flow for Year 1 = cf1 = $500Cash…
Q: Using the rule of 78s, a borrower who repaid a 12-month loan after only 5 months would save ____ of…
A: The rule of 78 is a rule of finance that is used to compute interest amounts on a loan by some money…
Q: The form of asymmetric information that exists before a financial transaction is in place is while…
A: Adverse selection is an asymmetric information problem that occurs prior to a financial transaction…
Q: What is the maturity of a U.S. Treasury bill with a bond equivalent yield of 8.56 percent and a face…
A: bond equivalent yield = r = 8.56%Face Value = fv = $100,000Price of Treasury bill = p =…
Q: Years until retirement Amount to withdraw each year $90,000 Years to withdraw in retirement 30…
A: Retirement income is the money one receives after they stop working, either through savings,…
Q: Question 1 : Consider a coupon bond with an 8% annual coupon rate, a 10% interest rate, and a $1000…
A:
Q: a. Calculate total rental cost and total buying cost. whole dollar.) Rental cost Buying cost b.…
A: Capital budgeting means looking at different choices for investments. You have to figure out if…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: A tax shield is a benefit that any individual or corporate entity receives by using deductions that…
Q: Use the following formula for the operating income: Operating income = Interest revenue +…
A: Asset utilization ratio is an important ratio for banks. This ratio measures the average yield on…
Q: A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of…
A: Compound = n = Semiannually = 2Time = t = 19 * 2 = 38Yield to Maturity = r = 11 / 2 = 5.5%Face Value…
Q: A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon…
A: Bonds are debt instruments issued by companies. The issuing company will pay periodic interest or…
Q: (Bond valuation relationships) Stanley, Inc. issues 15-year $1,000 bonds that pay $95 annually. The…
A: Here,Particulars YTM 8%YTM 13%YTM 6%Par value of Bond (FV)$1,000$1,000$1,000Coupon payment…
Q: The principal P is invested at the interest rate of r/year for t years. (Use a 365-day year.) P =…
A: Compound interest rate refers to the rate at which interest is calculated and added to the principal…
Q: How much will you pay on a 25 year, $400,000 mortgage if you make monthly payment at the beginning…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Sue invested $5,000 eleven years ago at 10%. Terri has the same amount saved today as Sue has. Terri…
A: Bond maturity:Bond maturity refers to the date on which a bond issue reaches its maturity date and…
Q: Van Buren Resources Inc. is considering borrowing $120,000 for 170 days from its bank. Van Buren…
A: Financing Costs:Financing costs refer to the interest cost a company would incur for borrowing…
Q: 20-year mortgage at 6.9% compounded monthly. How much interest will refinancing save?
A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…
Q: Kristjan borrowed 140 000 from a bank 4 years ago. The annual interest rate was 6.6% at the time and…
A: Here,Loan Amount $ 140,000.00Interest Rate6.60%Time Period in years12Refinancing Interest…
Q: Permian Partners (PP) produces from aging oil fields in west Texas. Production is currently 1.94…
A:
Q: Required information Spectra Scientific of Santa Clara, California, manufactures Q-switched…
A: Given that the loan is amortized, the monthly payment remains constant throughout the loan term.…
Q: The financial director of SolarTech Ltd meets with the research director quarterly to compare actual…
A: In this scenario, we have two key roles involved: the financial director and the research director…
Q: Consider the zero coupon Treasury bond yield curve. Suppose a 1 year bond has a yield of 2.13%. The…
A: 1 Year bond has a yield of 2.13%. The yield curve slopes downwards between maturities of 1 year and…
Q: Refer to Figure 4-1.The default risk premium paid by Charter Corp. in this market is represented by…
A: Treasury market Equilibrium (point C)within the treasury marketplace, equilibrium is reached at…
Q: ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel…
A: Gross Rent Multiplier:It represents a metric used for the evaluation of the property price and the…
Q: Juan invested $22,000 in a mutual fund 4 yr ago. Today his investment is worth $28,838. Find the…
A: Present Value = pv = $22,000Time = t = 4 YearsFuture Value = fv = $28,838
Q: You plan to borrow $46,400 at a 7.6% annual interest rate. The terms require you to amortize the…
A: Loans are paid by the equal annual payments and these payments carry the payment for interest and…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: A tax shield is a benefit that any individual or corporate entity receives by using deductions that…
Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…
A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…
Q: A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $88 and is selling…
A: To calculate the rate of return (yield to maturity) on a bond, you can use the following…
Q: Given the information below for StartUp Company, compute the expected share price at the end of 2022…
A: Here,…
Q: Due to high uncertainty in markets, the only quotes that are available for interest rates are…
A: Forward Rate = S0*(1+IUS)^n/(1+Ibritain)^nS0= Spot Rate = 1.48IUS = Interest rate in US = 1%Ibritain…
Q: 5. Compute the yield to maturity of a discount bond selling for $15,000.00 with a face value of…
A: Yield to maturity,YTM refers to the rat of return that an investors expects to earn if bonds or…
Q: Graham & Sons wishes to evaluate a proposed merger into the RCN Group. Graham had 2019 earnings of…
A: a. The earnings per share is calculated byCalculation of the expected earnings per share for Graham…
Q: The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $85 per share…
A: Put-Call Parity is a financial principle stating that the price of a European call option and a…
Step by step
Solved in 3 steps
- Calculate the premium or discount percentage on the fund, if the fund has total assets of $830 million and $420,000 of liabilities. At present, 44 million shares are outstanding, and the current market price is $19.5. A. 4.45% discount B. 5.85% premium C. 3.45% discount D. 3.43 % premiumFinance Suppose you are the money manager of a $4.94 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A В Beta 1.50 S 440,000 700,000 1,300,000 2,500,000 (0.50) 1.25 0.75 If the market's required rate of return is 13% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %Net asset value (NAV) of an investment fund is calculated as total portfolio value divided by number of fund shares. Accordingly, if the total portfolio value is 100.000 $ and the number of shares is 55.000, then the NAV would be 100.000 $/55.000 = 1,818 S. Now, suppose that you are a portfolio manager of a bond fund that has 20.000 fund shares outstanding. You consider 3 investments for your portfolio: (a) A T-bill that has a 194 day maturity with a face value of 10.000 $. (b) A zero-coupon bond that has a 10 year maturity with a face value of 100.000 $. (c) A bond that pays quarterly coupon payments with an annual coupon rate of 12%, a face value of 50.000 $ and a maturity of 5 years. You know that the annual market yields are 10%. If you invest them all right now, what would be the NAV of your fund at the time of investment? (1 year = 360 days)
- The Solace Fund Burrfoot Enterprises Majere Brothers Incorporated Uth Matar Limited Lance Medical Supplies Burrfoot Enterprises Majere Holdings Uth Matar Limited Lance Medical Supplies Total Fund Performance Holding Period Return 58.33% 22.61% -6.95% 5.75% =B5*C5 Required: Using the information in the tables above, please calculate the contribution each stock makes to the portfolio performance. Then calculate overall portfolio performance. (Use cells A3 to C6 from the given information to complete this question.) The Solace Fund Contribution to Portfolio Return 8.75% 6.78% -1.39% Portfolio Weight 2.01% 15% 30% 20% 35%The Western Capital Growth mutual fund has: Total assets $ 804,500,000 Total liabilities $ 3,300,000 Total number of shares 40,000,000 What is the fund's net asset value (NAV) per share?Consider an open-end mutual fund with 2 million shares outstanding, liabilities of $5 million, and the following portfolio of assets: Asset Shares Held Share Price PFE 200,000 300,000 400,000 35 BCS 10 АМС 8 What is the net asset value of the fund? Would your answer have been different if this were a closed-end fund instead?
- Calculate the net asset value per share (NAVPS) for a mutual fund with the following values. Market value of securities in the portfolio $1.2 billion Liabilities of the fund $39.3 million Shares outstanding 52 million The NAVPS for this mutual fund is $ (Round your answer to the nearest cent.)Calculate the NAV for a mutual fund with the following values: Market value of securities held in the portfolio = $1.2 billion Liabilities of the fund = $47 million Shares outstanding = 70 million The NAV per share is ?A mutual fund has a current offering price of $53.21. What is the net asset value if the fund charges a 3 percent front-end load? A. $51.61 B. $51.66 C. $54.57 D. $54.86 E. $54.91
- Suppose you are the money manager of a $4.82 millioninvestment fund. The fund consists of four stocks with the following investments and betas:Stock Investment BetaA $ 460,000 1.50B 500,000 (0.50)C 1,260,000 1.25D 2,600,000 0.75 If the market’s required rate of return is 8% and the risk-free rate is 4%, what is the fund’srequired rate of return?8-8 BETA COEFFICIENT Given tA mutual fund has assets of $50 million, liabilities of $150000 million and 1 million shares what is the net asset value(NAV) of the fund?Enter the answer to the nearest cent(two decimals)What is the current price per share of the LPEVX mutual fund? 1 2 3 4 5 6 Family/ Fund Symbol NAV Chg YTD % return 3-yr % chg AARP Funds Aggr AAGSX 10.25 0.08 6.2 −1.6 Consrv AACNX 10.55 0.02 4.0 4.0 Mod p AAMDX 10.50 0.05 4.9 1.3 AMF Funds IntMtg ASCPX 4.81 −0.01 0.1 −14.3 LgCpEq IICAX 8.16 0.08 7.5 −2.1 ShtUSGv ASITX 9.36 −0.01 0.2 0.7 UltraShrt p AULTX 5.45 −0.02 3.2 −12.2 UltShrtMtg ASARX 7.39 — 2.4 −4.4 USGvMtg ASMTX 8.64 −0.02 0.2 −0.7 APIEffFrtGrPrim fp APIEffFrtGrPrim fp APITX 8.13 0.10 9.0 −6.5 APIMultIdxPrim APIMultIdxPrim AFMMX 10.98 0.09 4.4 −9.6 AVS LPE Ptf AVS LPE Ptf LPEVX 5.82 −0.01 11.3 NS Aberdeen Fds…