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
Crank
3 years ago
11

A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.98 and an offer price of ​$22.90. ​Today, it's being

quoted at ​$24.19 ​(NAV) and ​$25.20 ​(offer). What is the holding period return on this load​ fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled ​$1.63 per​ share? Assume that none of the dividends and capital gains distributions are reinvested into the fund. ​(​Hint: ​You, as an​ investor, buy fund shares at the offer price and sell at the​ NAV.)
Business
1 answer:
Allisa [31]3 years ago
5 0

Answer:

12.75%

Explanation:

Given that

Net assets value = $24.19

Dividend and capital gain distribution = $1.63

Offer price = $22.90

The computation of Holding period return is shown below:-

= (Net assets value + Dividend and capital gain distribution - Offer price) ÷ Offer price

= ($24.19 + $1.63 - $22.90) ÷ $22.90

= $2.90 ÷ $22.90

= 12.75%

So, for computing the holding period return we simply applied the above formula.

You might be interested in
Alternative price indexes Because there isn't one single measure of inflation, the government and researchers use a variety of m
jekas [21]
The gdp deflector for this year is calculated
7 0
3 years ago
In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers than the entire construct
Elan Coil [88]

Answer:

The correct answer is False.

Explanation:

In the United States there are 1.14 million nonprofit associations and this non-commercial sector represents 8.5% of GDP (against for example 4.2% in France).

These institutions employ 9.3% of the active population, which constitutes a world record. Americans give each year $ 250 billion to these institutions for non-profit purposes, and these donations are tax exempt. Of the amount quoted, approximately 36% goes to the different Churches, 13% goes to education, 8.6% to health, and 5.4% to culture (that is, the latter percentage represents some 13,000 million dollars annually). Cinema-art and the producers of experimental films, cultural foundations, ballet and their dance bodies, publishing houses (especially university), are some examples of non-profit associations in the domain of culture, which year after year They are supported by Americans.

7 0
3 years ago
Zimmerman Auto sells new and used cars. Among its assets are the following: (1) the showroom building, a separate building used
In-s [12.5K]

Answer: The assets that are classified as plant assets on the company's balance sheet include :

(1) the showroom building, a separate building used to service customer cars, and various parking lots.

Plant asset is known as the long-term fixed asset that is used to bring forth or sell commodities and services for the institution. These assets are tangible and are expected to produce economic benefits for the organization.

4 0
4 years ago
In today's workplace, most employers issue a policy stating that they will monitor employees' use of any company-owned computer,
ladessa [460]

Answer:

The correct answer is b. about half.

Explanation:

Common sense makes it very clear: Work time is for work and corporate email is another tool of the organization (public or private) at the service of the objectives of that organization. But the telematic means are very peculiar and the reality shows that there is often confusion in this regard, and the worker uses corporate mail as a tool of particular use.

6 0
3 years ago
Robert gillman, an equity research analyst at Gillman Advisors, believes in efficient markets, He has been following the mining
antoniya [11.8K]

Answer:

Q1) a. 6.60%

Q2) c. retaining a higher percentage of earning will result in a higher growth rate.

Explanation:

Q1.)

Use dividend discount model (DDM) to solve for the growth rate;

g = r- (D1/P0)

whereby;

g = dividend growth rate

r = required rate of return = 11.40% or 0.1140 as a decimal

D1 = next year's dividend = $1.14

P0 = Current stock price = $23.75

g = 0.1140 - (1.14/23.75)

g = 0.1140 - 0.048

g = 0.066 or 6.6%

Therefore, the growth rate is 6.60%, making choice A correct.

Q2.)

c. Retained earning is the proportion of total net profit that a company reinvests back into the business for the purpose of investing in other potentially profitable projects.The returns from these projects would increase the value of the company at a faster rate if a higher percentage e.g 90% is retained. On the other hand, if the company pays a larger portion of its retained earnings e.g 70% as dividends, it will experience a slower growth rate making choice C correct.

5 0
3 years ago
Other questions:
  • If we place $8,592.00 in a savings account paying 7.5 percent interest compounded annually, how much will your account accrue to
    9·1 answer
  • If the rate of inflation is higher than your interest rate on your savings account you are losing buying power
    11·1 answer
  • Salary is not always the most important factor when making a career choice
    14·1 answer
  • In one to two paragraphs, write an essay describing what needs to happen to make a start-up business successful. Use specific ex
    9·1 answer
  • Suppose you just won the state lottery, and you have a choice between receiving $3,025,000 today or a 20-year annuity of $250,00
    8·1 answer
  • The taxpayer's spouse died at the beginning of 2019. He has no qualifying child. Which status should the taxpayer select when fi
    8·1 answer
  • Gladstone Co. has expected sales of $352,000 for the upcoming month and its monthly break even sales are $332,500. What is the m
    8·1 answer
  • What is the primary characteristic that differentials a zero based budget from a conventional budget. A. A zero based budget doe
    13·1 answer
  • Is a loan estimate the same as a pre approval letter?
    8·1 answer
  • jeremy has focused on developing his listening skills and using his​ firm's new intranet technology to better convey information
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!