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LenaWriter [7]
2 years ago
15

The Capitalist Mutual Fund's portfolio is valued at $77.7 million. The fund has liabilities of $5.5 million, and the investment

company sponsoring the fund has issued 1,900,000 shares. What is the fund's net asset value (NAV)? (Round your answer to 2 decimal places.) Multiple Choice
A $34.42 NAV per share
B. $43.79 NAV per share
C. $76.00 NAV per share
D. $38.00 NAV per share
E. $85.58 NAV per share
Business
1 answer:
Orlov [11]2 years ago
7 0

Answer:

The answer is D. $38.00 NAV per share.

Explanation:

Please find the below for detailed explanations and calculations:

We have the net asset value of a Fund is equal to its Market Value taken way its liabilities.

Thus, for Capitalist Mutual Fund's portfolio, the total net asset value= Total market valued - Total Liabilities = 77,700,000 - 5,500,000 = $72,200,000.

Net asset value per share = Total net asset value / Total number of outstanding share = 72,200,000/1,900,000 = $38.00 NAV per share.

Thus, the answer is D. $38.00 NAV per share.

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The Jameson Company just paid a dividend of $0.75 per share, and that dividend is expected to grow at a constant rate of 5.50% p
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Current price of the stock of Jameson company is $18.62. Therefore, the correct option is A

Explanation:

The formula of required rate of return is:

Required rate of return = Risk free rate + Beta × Market risk premium

= 4% + 1.15 × 5%

= 4%  5.75%

= 9.75%

Computation of current stock price is:

Current stock price = Expected dividend per share / (Required rate of return - Growth in dividend)

= (0.75 + [5.50% × 0.75] ) / (0.0975 - 0.055)

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3 years ago
A. Construct an amortization schedule for the $300,000 loan with a 2.2% interest rate compounded monthly. The loan will be paid
Gala2k [10]

Answer:

since there is not enough room here, I prepared two amortization schedules on an excel spreadsheet and I attached them

Explanation:

in order to determine the monthly payment, we can use the formula to calculate present value of an annuity:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.2% / 12 = 0.18333% and 180 periods = 153.1964438

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 153.1964438 = $1,958.27

we use the same formulas for the second question:

PV = annuity payment x annuity factor

annuity payment = PV / annuity factor

  • PV = $300,000
  • annuity factor for 2.7% / 12 = 0.225% and 360 periods = 246.54977

I used an annuity calculator to determine the annuity factor

annuity payment = $300,000 / 246.54977 = $1,216.79

Download pdf
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
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7 0
3 years ago
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