Talltree ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appending 2.B of this chapter (below). Construct an example of fund performance where the clawback provision would be triggered. In this example, compute carried interest paid in each year, and show the total amount that must be paid back by the GPS upon liquidation of the fund. committed capital 250 gross returns 10.0 % (for most years) carry 20.0% management fee 2.0% priority return 8.0%

Talltree ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appending 2.B of this chapter (below). Construct an example of fund performance where the clawback provision would be triggered. In this example, compute carried interest paid in each year, and show the total amount that must be paid back by the GPS upon liquidation of the fund. committed capital 250 gross returns 10.0 % (for most years) carry 20.0% management fee 2.0% priority return 8.0%

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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A company plans to make four annual deposits of $2,250 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $2,250 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $2,250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Complete this question by entering…
Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest inProject X Invest inProject Y Investment required $ 35,000 $ 35,000 Annual cash inflows $ 12,000 Single cash inflow at the end of 6 years $ 90,000 Life of the project 6 years 6 years The company’s discount rate is 18%. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept?
A sinking fund is generated for the recovery of bond of $1000000 at the end of 25 years. How much money should be given out of profit each year for the sinking fund, if the investment could earn interest of 4% per annum..?
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Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24
8. Construct a sinking fund table showing the growth of the fund over 5 years, if P950 is to be deposited at a rate of 6% compounded semi-annually.
Loaded-Up Fund charges a 12b-1 fee of 0.75% and maintains an expense ratio of 0.50%. Economy Fund charges a front-end load of 3.0%, but has no 12b-1 fee and has an expense ratio of 0.25%. Assume the rate of return on both funds' portfolios (before any fees) is 10% per year. Required: How much will an investment of $1,000 in each fund grow to after: Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. a. 1 year b. 3 years c. 10 years Loaded-Up Fund Economy Fund
Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)
A back load fund has initial load of 5% and it will decline by 1% each year after the initial purchase. If you take your money out at the end of year 3, what is the cost of the load if you invested $10,000 in the fund with initial NAV of $23 and adjusted NAV of $36.8 at the end of year 3?
Swifty Corporation, having recently issued a $20,139,700, 15-year bond issue, is committed to make annual sinking fund deposi of $616,500. The deposits are made on the last day of each year and yield a return of 10%. Click here to view factor tables. Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity Will funds be sufficient?
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A commercial real estate investment fund must report its quarterly investment performance to investors. A summary of its (1) beginning and end-of-quarter assets and equity and (2) cash inflows and outflows during the quarter are as follows: Beginning of Quarter During Quarter $69 million Cash $10 million NOI from operations $519 million Market value of props $2 million Paid management fees $39 million Other Investments $25 million Distributions to investors $338 million Fund debt $219 million Investor contributions $194 million Property acquisitions $44 Property dispositions Other investments will earn 4% interest (1% per quarter) and property debt will be at a 6% rate (1.5% per quarter). The properties were appraised at the end of the quarter for $674 million. Assume any interest on short-term investments is offset by interest paid on short-term debt. Required: a. What would be the beginning equity value? b. What would be the ending equity value (MVEE)?…

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