1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aliina [53]
3 years ago
10

Consider a mutual fund with $260 million in assets at the start of the year and 10 million shares outstanding. The fund invests

in a portfolio of stocks that provides dividend income at the end of the year of $2.5 million. The stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end. What is the net asset value at the start and end of the year?
Business
1 answer:
Ugo [173]3 years ago
4 0

Answer: $26; $28.057

Explanation:

Total value = $260 million in assets

Shares outstanding = 10 million

Dividends = $2.5 million

Fund value at the start of the year = \frac{Total\ value}{No.\ of\ shares\ outstanding}

                                                         = \frac{260}{10}

                                                         = $26

Fund value at the end of the year:

Dividend per share = \frac{Dividends}{No\ of\ shares}

                                = \frac{2.5}{10}              

                                = $0.25

Price gain at 9% with deduction of 1% of 12b-1

Fund value at the end of the year = $26 × 1.09 × (1 - 0.01)

                                                        = $28.057

You might be interested in
Combined communications is a new firm in a rapidly growing industry. the company is planning on increasing its annual dividend b
frozen [14]

The annual Dividend (D0) = $1.10

D1 = $1.10 * (1+0.21)^1 = $1.33

D2 = $1.10* (1+0.21)^2 = $1.61

D3 = $1.10* (1+0.21)^3 = $1.95

D4 = $1.10 * (1+0.21)^4 = $2.36

D5 = $1.10*(1+0.05) = $2.48

Now the price of the stock at the end of the fourth year (P4) = $2.48/(0.085-0.05)

P4 = $2.48 / (0.035)

P4 = $70.85

Now the Price of the stock (P0) = $1.33/(1+0.085) + $1.61/(1+0.085)^2 +$1.95/(1+0.085)^3 + $2.36/(1+0.085)^4 + $70.86/(1+0.085)^4

Price of the stock (P0) = $1.23 +$1.37 + $1.53 + $1.70 + $51.13

Price of the stock (P0) = $56.86

Therefore the correct option is d, $56.86

3 0
2 years ago
The tables show the annual incomes for the citizens in two countries, Melka and Sorare. Use this information to answer the quest
masya89 [10]

Answer: The nation of Sorare

Explanation:

The Gini coefficient is a statistical measure that is used to measure income disparity/ inequality in a country.

The closer to zero the Gini coefficient is, the more equitable the income in a country is. Simply put, if more people in a nation have similar levels of income, the Gini coefficient will be smaller.

In the question, the nation of Sorare has two people earning a high amount of money while others make considerably less. This shows a high income disparity which means that the Gini coefficient here will be higher than in Melka where citizens mostly have similar incomes.

4 0
3 years ago
At the beginning of the year, a company predicts total overhead costs of $690,900. The company applies overhead using machine ho
nignag [31]

Answer:

$9,400

Explanation:

We know,

predetermined overhead rate for machine hour = \frac{total overhead cost}{total machine hour}

Given,

Total overhead cost = $690,900

Total machine hours = 1,470

Putting the values into the formula, we can get

predetermined overhead rate for machine hour = \frac{690,900}{1,470}

predetermined overhead rate for machine hour = $470

When we use a separate job, the overhead cost will be = predetermined overhead rate × total hours used by the job.

The amount of overhead should be applied to Job 65A if that job uses 20 machine hours during January  = 20 hours × $470 = $9,400

6 0
3 years ago
DirectProtect is an insurance provider that uses telemarketers rather than insurance agents to sell its insurance and to deal wi
katovenus [111]

Answer:

d. Constraint

Explanation:

The dependent variable variations are explained as an effect, due to variations in causal independent variables. The dependent variable might be in form of an objective function, as a function of independent variables, which needs to be maximised or minimised. Constraint is a limitation to the objective function maximisation / minimisation.

Given case : Introducing product in new markets (through telemarketers) & conducting research about success of sales efforts - has 'Sales' as the main objective function to be maximised, dependent on independent variable like Telemarketers . Constraint could be any restriction in form of budget , time (six months time mentioned)

3 0
3 years ago
THIS IS JOURNALISM!! NOT BUSINESS
Alex787 [66]

Answer: B.

Explanation: I would say B because they probably don't give two BLEEPS about an editor. And not C because it doesn't cost money to edit a entry.

5 0
3 years ago
Read 2 more answers
Other questions:
  • Under the FINRA Conduct Rules, a broker-dealer may charge a customer all of the following services except:_______.a. collection
    12·1 answer
  • How long will it take to pay off a loan of ​$50,000 at an annual rate of 9 percent compounded monthly if you make monthly paymen
    7·1 answer
  • Emilio was involved in an accident that left him unsteady and uncoordinated. which energy pathway would be best for him to work?
    15·2 answers
  • Frank slips and falls on Guy's Harbor Tour Boat and is injured. Frank files a suit against Guy's for $500,000. If Frank is 20 pe
    13·1 answer
  • Michelle always drives down Hampton Avenue to go to work. One morning, Michelle discovers that Hampton Avenue is closed at Wood
    14·1 answer
  • Pine Street Inc. makes unfinished bookcases that it sells for $58.09. Production costs are $37.97 variable and $10.12 fixed. Bec
    11·1 answer
  • Hannah Spiritway works for a cable TV company in a large city. She handles telephone calls from customers who are having problem
    11·1 answer
  • The 2018 balance sheet of Speith’s Golf Shop, Inc., showed long-term debt of $5 million, and the 2019 balance sheet showed long-
    9·1 answer
  • Explain the use of NBT​
    14·2 answers
  • Which ebusiness tool increases the speed of business by allowing the transfer of documents with the same speed as the telephone
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!