Exercise 2:Calculate the NAV of the following fund, assuming 35,000 shares are outstanding. Calculate the percentage change in the NAV of the fund on April 29th 2022.StockShares ownedpricePYPL3,000$ 117.65TWTR5,000$ 50.98PG9,000$ 154.62NVDA6,000$ 259.31RTX2,000$98.81Besides the underlying securities listed above, the fund shows on the Balance SheetCash$ 155,000.-Liabilities$ 18,500.-An investor comes the day after computing the above NAV and invests quarter million USD in the fund. Assume no fees or expenses. The money manager buys2,000 shares of PayPal and 1,500 of Twitter.a) Will the NAV increase or decrease? Why?b) Calculate the return on the investor's shares. How many did he buy with 250k$?

Computation of NAV of the fund : Particulars Amount Amount Market Value of Shares owned by fund…

Answered: Shares own 3,000 5,000 9,000 6,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A1
A9
ANSWER LETTER D AND E
Question 2 Acme Co. issued 500 shares of $100 par Preferred Stock for $101 per share. Record this transaction. Edit View Insert Format Tools Table 12pt v Paragraph v В I U O words Question 3 Acme Co. bought 50 shares of its stock for $7 per share to be held as Treasury Stock.
6 Company A has significant influence by owning 50,000 of the 100,000 shares of Company B common stock. During the current year, Company B earns $700,000 and pays cash dividends of $400,000. Which amount represents the resulting increase in the Equity Investment account? O $150,000 O $200,000 O $350,000 O $550,000
1,00,0000.00 common stock authorized 300,000.00 common stock issued value of land 1,200,000.00 $1.00 par value prepare the journal entries
plz solve!!
A * NI Yo LTEI 8%05:55 am LTE 4+ +91 6291965 492 12 August, I:52 pm YLtd. Issued 10000 equity share of Rs. 100 each. Payable as Rs. 25 on application, Rs. 40 on allotment, Rs. 15 on first call and Rs. 20 on final call Applications were received for 11000 shares. Excess applications were rejected. All money duly received except from Mr. Mishra holding 100 shares paid both calls money along with allotment. Prepare journal to record above transactions in the books of Y Ltd.
Ordinary share, P1 par P4,800,000 Share premium in Excess of Par— Ordinary share 550,000 Preferred 8 1/2% share, P50 par 2,000,000 Share premium in Excess of Par—Preferred share 400,000 Retained Earnings 1,500,000 Treasury ordinary share (at cost) 150,000 The total shareholders' equity of Uub Corporation is a. P9,100,000 b. P9,250,000 c. P7,750,000 d. P7,600,000
Face 2 Face Corporation reports 100 outstanding shares, 500 authorized shares, and 50 shares oftreasury stock. How many shares are issued?
QUESTION TWO B plc has the following capital structure: K’000Ordinary shares – K0.40 5,000 Retained earnings 500 10% Preference shares at K1 1,500 10% K100 redeemable debentures 3,000 Total funds employed 10,000 The market price of the preference shares is 80n ex-div, the ordinary shares are quoted at K1.62 cum-div per share. Debenture stock is quoted at K97.5 ex-interest per K100 nominal and will be redeemable at par in exactly 7 years’ time. B plc has just declared dividend of K1,500,000 in total for all issued ordinary shares. The dividend growth rate is 4% per year forever. Company tax is 30% per year. The market rate of return is 12% and the company has an equity beta value of 1.25 Required:a) Calculate WACC based on market values. b) Discuss the implications of using a wrong WACC value in project appraisal and comment on the current level of capital gearing.
a.2,250,000 b.3,250,000 c.3,050,000 d.5,500,000

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS