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andrew-mc [135]
4 years ago
5

A client recently purchased a sizeable number of mutual fund shares and knows that the Net Asset Value will change daily. The cu

stomer asks the RR how the NAV number is computed. Which of the following best describes the computation to arrive at NAV per share?
(A) NAV per share is calculated by finding the average value on a per share basis over the previous quarter.
(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.
(C) NAV per share is calculated by taking the total value of the portfolio of the fund, adding sales charges received, and then dividing this figure by the total number of shares currently outstanding.
(D) NAV per share is calculated by finding the total appreciation of the portfolio and dividing this figure by the total number of shares outstanding.
Business
1 answer:
julsineya [31]4 years ago
7 0

Answer:

(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.

Explanation:

The Net asset value(NAV) of any mutual fund corporation can be determined using below mentioned formula:

Net asset value(NAV) per share=(Current market value of all assets - liabilities) /Total number of shares outstanding.

Based on the above formula, the statement which best describe the computation  to arrive at NAV per share is

(B) NAV per share is calculated by subtracting the liabilities of the fund from the total assets of the fund, then dividing this number by the total number of shares currently outstanding.

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It is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

<h3>What is asset intensity?</h3>

The asset or capital intensity is a measure of the amount of assets needed to produce some dollars of sales revenue.

The asset intensity ratio is obtained by dividing the total assets by sales.

Thus, it is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

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It appears that kkr is willing to pay a lot more for rjr than the market value of rjr before the takeover contest. what are the
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The justification was that the superior financing of the KKR bid would require less gutting of the company to pay off debts

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Debt is an obligation that requires one party, the debtor, to pay another party, the creditor, money or other agreed-upon value. Debt is a delayed payment or series of payments that differs from an immediate purchase.

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4 0
3 years ago
Assume the spot Swiss franc is $0.7000 and the six-month forward rate is $0.6950. What is the minimum price that a six-month Ame
Rama09 [41]

Answer:

2 cents

Explanation:

The spot price = $0.7000 = 70 cents, The forward rate = $0.6950 = 69.5 cents and the call option with striking price = $0.6800 = 68.00 cents

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