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LenaWriter [7]
3 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]3 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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Wholesome Cuisine, a frozen foods company, decides to create a new mail order meal division, focused on offering delicious food
emmasim [6.3K]

Answer:

Idea development

Explanation:

At the idea development stage, the company just decides to appraise and investigate whether the innovative idea is feasible and that will it generate value for the company in the long term. Furthermore, the idea is just a theoretical information that just sounds good for the business future and there is further investigation pending to appraise it.

3 0
3 years ago
1. Analysis How many burritos will the producer supply at the price of $1? In your opinion, what is the reason for that quantity
amm1812

The number of burritos that will be supplied depends on the costs the supplier incurs.

You did not include any charts that can be used to answer this specific question so I will give a general answer.

When a supplier is deciding the price at which to supply a good, they look at:

  • Their costs both fixed and variable
  • The price others are charging
  • The demand for the good

The most important factor is their costs. If in this case, it costs more than $1 to produce a burrito, they will not supply burritos. If their costs are less than a dollar, the number of burritos supplied will then depend on other factors but they will supply some.

In conclusion, if the cost to make the burrito is less than $1, the supplier will supply no burritos but if the cost is less, they will supply based on other factors.

<em>Find out more at brainly.com/question/1908405.</em>

8 0
2 years ago
Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro
aleksandrvk [35]

Answer:            ke = D1/Po + g

                 0.1025 = D1/57.50 + 0.06

        0.1025-0.06 = D1/57.50

            0.0425     = D1/57.50

                      D1    = 0.0425 x 57.50

                      D1    = $2.444

           

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

6 0
3 years ago
Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where
WITCHER [35]

Answer:

Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.

Explanation:

yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%

if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%

we can use the approximate yield to maturity formula to find the market price of Chris's bond:

2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]

0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]

0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV

1.2 + 0.012MV = 8 - 0.05MV

0.062MV = 6.8

MV = 6.8 / 0.062 = 109.68

8 0
3 years ago
Anwar dresses for a cold fall day and steps outside to find it sunny and hot. he goes back inside to change out of his sweater a
____ [38]
The answer to this question is practical
Practical intelligence refers to people's capability in applying the knowledges that they have into real life situation.
In this particular case, Anwar already knew the effect of clothes depending on the weather, and he apply that knowledge in order to achieve a certain desired outcome
8 0
3 years ago
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