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kumpel [21]
3 years ago
5

Consider a mutual fund with $200 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 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold and there are no capital gains distributions. The fund charges 12b-1 fees of 1%, which are deducted from portfolio assets at year-end. a. What is the fund's net asset value at the start and end of the year?
Business
1 answer:
inysia [295]3 years ago
3 0

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

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Answer:

b. work to identify root causes, not just symptoms.

Explanation:

The main thing on which Joseph Juran focused was on quality, how it could be improved in planning, and performing properly.

This provided for the quality controls, plans, improvements which could be made, but it did not work on finding the causes behind the lack that why it could not be achieved.

Accordingly it did not in manner focused on the finding the symptoms or root causes.

As it was focused on the action of now what can be done.

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Any excess funds above those required to pay-off encumbrances realized at a foreclosure sale belong to common stockholders.

Explanation:

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8 0
4 years ago
The bookkeeper mailed out a check for $450 to a vendor, but the check has not been cashed yet. How is this recorded in a bank re
stiks02 [169]

Answer:

The answer is E.

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This cheque has already been registered as an outflow on the balance per cash book. And in reconciling this with balance per bank statement, this amount of $450 should be deducted from the bank balance of cash. The business should assume the bank has paid it.

8 0
3 years ago
You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4500 per mont
Triss [41]

Answer:

623,459.79 and 224.51

Explanation:

first lets consider the first part of the problem and is how mucho do i need to accumulate for having an annuity for 25 years. this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the present value of future payments affected by an interest rate.by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

a_{25*12} =4,500*\frac{1-(1+0.006)^{-25*12} }{0.006}

look at the value 25*12 because the problem tells us is during 25 years but the payment is monthly, and look at the 0.006 and it is comming from the APR/12 and we must do that because this rate is componded Monthly:

a_{25*12} =623,459.79

so for the second part we must calculate the second part we must calculate the acumulated value at 40 years of work:

s_{n} =P*\frac{(1+i)^{n}-1 }{i}

where s_{n} is the future value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

623,459.79 =P*\frac{(1+0.006)^{40*12}-1 }{0.006}

solving for P we have:

P=224.51

4 0
4 years ago
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