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irga5000 [103]
2 years ago
11

A mutual fund had NAV per share of $19.00 on January 1, 2016. On December 31 of the same year, the fund's NAV was $19.14. Income

distributions were $0.57, and the fund had capital gain distributions of $1.12. Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year
Business
1 answer:
slava [35]2 years ago
5 0

Answer:

9.63%

Explanation:

Calculation of Mutual Fund rate of return that the investor receive on the fund last year

Using this formula

Rate=(Fund's NAV -NAV per share +Income distributions+ Capital gain distributions )

Let plug in the formula

Where:

Fund's NAV =$19.14

NAV per share=$19.00

Income distributions=.57

Capital gain distributions =1.12

Hence

Rate =($19.14 - 19.00 + .57 + 1.12) / $19.00

=1.83/$19.00

=0.0963×100

Rate = 9.63%

Therefore without considering taxes and transactions costs, the rate of return that the investor receive on the fund last year will be 9.63%

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During the last few decades in the United States, health officials have argued that eating too much beef might be harmful to hum
Lyrx [107]

Answer:

d. Individual consumers, concerned about their own health, decreased their demand for beef, which lowered the equilibrium price of beef, making it less attractive to produce.

Explanation:

One of the factors that affect change in demand is change in consumer preference. The health concern of beef will affect bring about this change in consumer preference and consequently results in less demand for beef. When there is less demand for beef, the price will go down. And as the price goes down, producers will have less incentive to supply more. This behavior is in consonance with law of supply that says the lower the price, the lower the quantity supplied, all things being equal.

7 0
3 years ago
For​ 2018, Winters Manufacturing uses machineminushours as the only overhead costminusallocation base. The direct cost rate is $
valina [46]

Answer:

Profit margin  =  $3 per unit

Explanation:

<em>The profit margin earned is the difference between selling price and the manufacturing cost</em>

Manufacturing cost per unit = variable cost + fixed overhead cost per unit

overhead absorption rate = estimated overhead/estimated machine hours

                                             =$220,000/20,000 machine hours

                                           = $11 per hour

Manufacturing cost per unit = 2 + (11 × 2) = $24 per  unit

Profit margin  = 27 - 24

                        = $3 per unit

5 0
3 years ago
Assume year 1 is 2019 and by the beginning of year 4, the Sanchezes have paid down the principal amount of the loan to $500,000.
Margaret [11]

Answer: $7,000

Explanation:

Interest deduction is allowed by the IRS if the loan was taken to improve the home. However, for married couples, only loans below the $750,000 limit can have their interest deducted.

The Sanchezes have paid off $500,000 of the principal of their previous loan so we will assume that was enough to get this new loan under the $750,000 limit.

Allowable interest deduction will therefore be:

= 100,000 * 7%

= $7,000

8 0
2 years ago
Which scenario below is an example of complementary products, based on their cross-price elasticity?A. Bananas and lettuce, with
ipn [44]

Answer: B. Shampoo and conditioner, with an elasticity of -3.5.

Explanation:

Complimentary products are those which see their quantity demanded move together because the goods usually compliment each other like tea and sugar.

Their Cross-price elasticity shows this by being a negative figure. This is because when the price of one commodity goes up, the quantity demanded of the other goes down because higher prices lead to lower quantity demanded.

The actual question showed that Conditioner and Shampoo had a cross-price elasticity of -3.5 so this is the correct answer.

3 0
2 years ago
Delta airlines prices its tickets so that it is less expensive to travel between midnight and 5:00
svp [43]
There are different types of pricing strategies: penetration pricing (entering the market with a low price), economy pricing (low marketing and low prices), premium pricing (when the price is higher than the competitors), psychological pricing (example $99, instead of $100), demand-based pricing (based on the demand of the customers).
<span>Delta airlines prices its tickets so that it is less expensive to travel between midnight and 5:00
a.m. than during the day, when there is heavy business travel. this illustrates demand-based pricing.</span>
4 0
3 years ago
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