Answer:
b. $6,600,000
Explanation:
The computation of the fee is shown below:
= Annual management fee + performance management fee
where,
Annual management fee = $400 million × 0.01 = $4 million
And, the performance management fee
= Incentive percentage × hedge fund × excess return
= 20% × $400 million × 3.25%
= $2.6 million
The excess return is
= {($445 million - $400 million) × $400 million - 8%}
= 11.25% - 8%
= 3.25%
So, the fee is
= $4 million + $2.6 million
= $6.6 million or $6,600,000
Answer: $13,692,683.93
Explanation:
Present value = Amount / (1 + rate) ^ number of periods
= 19,046,180 / (1 + 8.6%)⁴
= $13,692,683.93
<em>Options are most probably for a variant of this question. </em>
Answer:Speculative damages
Explanation:
These is a term of a contract to recover from loss that may occur in the future from the contract execution.
Answer:
The rate at which money circulates through an economy.
The velocity of money is 2.
Explanation:
The velocity of money is the rate at which money circulates in an economy. It can be defined as the rate at which money is exchanged or is used to purchase goods and services.
It is the number of times money changes hands or number of times money has been used in a given period of time.
According to the equation of exchange,
Nominal output
= 
Velocity of money
= 
= 
= 2
Do you have any choices? or any more information that I can look at to help you :)
