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
Young people need about
Doss [256]
D. Nine to eleven, a quick google search solves that
7 0
3 years ago
Read 2 more answers
Tropic beach balls, inc. is considering several investment options. if the company wants to maximize investment income, when is
poizon [28]
The best time to invest would be <span>c : when sales are consistent.
When sales are consistent, companies do not have to worry about unpredicted occurrences that could threaten their finance because they could always cover it in the next inflow. During this time, company could start making their investment as long as the investment is highly liquid.</span>
5 0
3 years ago
A nondiscriminating monopolist:
max2010maxim [7]

Monopolists do not prefer to produce in the when the demand for a good produced by them is inelastic. Option B is the correct answer.

  • It is common to observe that monopolists, avoid engaging production when the demand for their product becomes inelastic.
  • In order to understand this situation, it is important to address the meaning of inelastic demand.
  • The term 'inelastic demand' refers to a situation where the demand for a product does not increase/decrease (change) when there is an increase/decrease (change) in its price.
  • This does not lead to profits for a monopolist.
  • It is because, a firm will be able to secure profits by producing lower amounts of goods for a higher price when the demand is elastic.
  • Hence, when the demand is inelastic, the increase in the quantity will be sold at the previous standard price, leading to a fall in terms of the total revenue.

Therefore, it is clear that a monopolist will not produce when the demand for a good is inelastic.

Learn more about Demand Elasticity here:

brainly.com/question/5078326

#SPJ10

3 0
1 year ago
Sandra waterman purchased a 52-week, $1,000 t-bill issued by the u.s. treasury. the purchase price was $996. (a) what is the amo
Darina [25.2K]
(a) Discount amount = Face value - Price of t-bills = $1,000-$996 = $4

(b) Amount received at maturity = Face value = $1,000 (Note: T-bills are guaranteed and thus one of the safest investment).

(c) Current yield, R = Discount amount/Face value * 360/t, where t = 52 weeks = 360 days.

Then,

R = (4/1000)*(360/360)*100 = 0.4%
6 0
3 years ago
Type the correct answer in the box. Spell all words correctly.
Ganezh [65]

read the resume

employers might do a reference check

see if the skills match the job requirements

some even do a credit check

some check grades/ test scores

needs to develop a set of skill requirements needed for a job

6 0
3 years ago
Other questions:
  • Pharoah Company invests $10,400,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as availab
    11·1 answer
  • ABC Co. expects to sell 2,200 units, give or take 10 percent. The expected variable cost per unit is $8.43 and the expected fixe
    11·1 answer
  • Socialism is __________. a) an economic system based on private property and market exchange. b) an economic system where the go
    9·1 answer
  • Rhubarb pie is a dessert. therefore, whoever eats rhubarb pie eats a dessert
    12·1 answer
  • While many traditional measures of success revolve around the firm's financial performance, it is also important to gauge the sa
    5·1 answer
  • Use your understanding of the current international business environment to complete the sentence. A result of globalization is
    15·1 answer
  • The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info
    12·1 answer
  • Why are Americans dependent of what is produced in other countries
    9·1 answer
  • From the video "the best stats you've ever seen "
    9·1 answer
  • What state in the country has the highest percent of their credit economy with subprime credit scores?.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!