Answer: Start = $300 million
End = $318.59 million
Explanation:
NAV can be calculated by dividing the funds Assets net of Liabilities by the total number of outstanding shares.
At start of the year NAV is $300 million and NAV per share is therefore,
= 300 million/ 10 million
= $30 per share.
Ending NAV
During the year the fund made Investments and increased by a price of 7%
= 300 million (1 + 0.07)
= $321 million
We still have to subtract the 12b-1 fees that the fund charges though and that would result in,
= 321 million * (1 - 0.0075)
= 318.5925
= $318.59 million.
Dividing this by the total number of outstanding shares we have,
= 318.59 /10
= $31.86
$31.86 is the NAV per share at year end.
Answer: $80,242
Explanation:
Common stock = Assets - Liabilities - Retained earnings
Assets next year = 256,555 + 55,000
= $311,555
Liabilities remain unchanged.
Retained earnings
= Opening retained earnings + Net income - dividends
= 49,793 + 44,200 - 12,000
= $81,993
Common stock next year;
= 311,555 - 149,320 - 81,993
= $80,242
Answer:
C. is the value of the next best alternative as a result of choosing some given alternative
Explanation:
Opportunity cost -It is the the benefit that an individual , business or investor miss out , while choosing an alternative .The financial reports does not show the opportunity cost , which the owner of the business use to make an educated decisions while going through multiple options .
Answer:
B
Explanation:
Original Cost -$120,000
Useful life -10 years
Residual Value - $20000
Annual depreciation - $(120,000-20000)/10 = $10,000
Accumulated depreciation for 4 years = 10*4= $40000
Book value at disposal = $120,000-$40000= $80000
Sales value = $35,000
Loss on disposal = $80,000-$35000= $45,000
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