Answer:
i would say b im not sure
Explanation:
Answer:
a. $2953.9
b. $2813.24
Explanation:
To calculate the future value of an annuity paid at the beginning of the period, you have:
![VF = A\left[\frac{(1+i)^{n+1} - (1+i)}{i}\right] = 100\left[\frac{(1.05)^{19} - (1.05)}{0.05}\right] = 2953.9](https://tex.z-dn.net/?f=VF%20%3D%20A%5Cleft%5B%5Cfrac%7B%281%2Bi%29%5E%7Bn%2B1%7D%20-%20%281%2Bi%29%7D%7Bi%7D%5Cright%5D%20%3D%20100%5Cleft%5B%5Cfrac%7B%281.05%29%5E%7B19%7D%20-%20%281.05%29%7D%7B0.05%7D%5Cright%5D%20%3D%202953.9)
To calculate the future value of an annuity paid at the end of the period, you have:
![VF = A\left[\frac{(1+i)^{n} - 1)}{i}\right] = 100\left[\frac{(1.05)^{18} - 1)}{0.05}\right] = 2813.24](https://tex.z-dn.net/?f=VF%20%3D%20A%5Cleft%5B%5Cfrac%7B%281%2Bi%29%5E%7Bn%7D%20-%201%29%7D%7Bi%7D%5Cright%5D%20%3D%20100%5Cleft%5B%5Cfrac%7B%281.05%29%5E%7B18%7D%20-%201%29%7D%7B0.05%7D%5Cright%5D%20%3D%202813.24)
Mr. Knox will have $2953.9 at the end of the 18 years, if he pays $100 at the beginning of each year. On teh other hand, Mr Knox will have $2813.24 at the end of the 18 years, if he pays $100 at the end of each year.
Answer:
a. 13.33%
b. 10%
c. 8%
d. 5.71%
Explanation:
The computation of nominal rate of return is given below:-
Rate of return = Dividend ÷ Current market price
For the first case
= $8 ÷ $60
= 13.33%
For the second case
= $8 ÷ $80
= 10%
For the third case
= $8 ÷ $100
= 8%
For the fourth case
= $8 ÷ $140
= 5.71%
Note :- To get $8 you need to multiply by $100 by the 8%
Answer:
At start = $20/share
At end = $21.384
Explanation:
DATA
ASSets at the start = $200m
Outstanding shares = 10m
Dividend income at the end = $2m
Gain in price = 8%
12b-1 fees = 1%
A.
Net assets at the start can be calculated by dividing assets at the start by outstanding shares
Net Assets value at start = Assets at start/Outstanding shares
Net Assets value at start = $200m/10m
Net Assets value at start = $20/share
Net Assets value at the end can be calculated by multiplying gain price with 12b-1 fees
Net assets value at the end = Gain Price x (1-12b-1 fees)
Net Assets value at the end = ($20x$1.08) x (1 - 0.01)
Net Assets value at the end = $21.6 x 0.99
Net Assets value at the end = $21.384
