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Ksivusya [100]
3 years ago
9

12’) The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities

of $6 million and 10 million shares outstanding. If the fund sells for $25 a share, what is its premium or discount as a percent of NAV?
Business
1 answer:
murzikaleks [220]3 years ago
8 0

Answer: 28.87%

Explanation:

Given the following ;

Portfolio worth = $200,000,000

Liabilities = $6,000,000

Outstanding shares = $10,000,000

Share value = $25 per share

NAV, The Net Asset Value of the Stone Harbor Fund is the difference between total worth of it's asset and it's Liabilities.

Net Asset Value = (portfolio worth - Liabilities) ÷ outstanding shares

NAV = $(200,000,000 - 6,000,000) ÷ $10,000,000

NAV =$194, 000,000 ÷ $10,000,000

NAV = $19.4

Premium = $25 - $19.4 = $5.6

Expressed as a percentage of Net Asset Value:

$(5.76 ÷ 19.4) × 100 = 0.2886 × 100 = 28.87%

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The carrying value decreases from the issue price to the par value over the bond’s term.

Explanation:

The carrying value of a bond is the par value or face value of that bond plus any unamortized premiums or less any unamortized discounts. The net amount between the par value and the premium or discount is called the carrying value because it is reported on the balance sheet. When a bond is issued at a premium, the carrying value is higher than the face value of the bond.

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Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are
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a. increase price in the short run but not in the long run.

Explanation:

A perfectly competitive market is one in which firms in an economy produce similar goods, and use resources that are limited in quantity.

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In the long run as firms have low barrier to entry more firms enter the market and supply shifts from S1 to S2. There is reduction in prices and profits start to fall. This is illustrated in the second diagram.

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Wilma, Betty, and Fred are partners who share income and losses in a 5:3:2 ratio. Wilma decides to retire from the partnership w
Hoochie [10]

Answer:

<u>debited</u>

Explanation:

Partnership refers to a mutual agreement wherein two or more individuals agree carry out a business and to share profits and losses in a specified ratio or as per the clauses of the partnership deed.

When partners retire, the balances standing to the credit of their capital accounts needs to be settled or paid off.

As per the given information, Wilma is paid $45000 in cash. The journal entry in this case would be:

Wilma's Capital A/C                                    Dr.  $45000

    To Cash A/C                                                                $45000

For the remaining balance, Wilma shall be paid in cash as follows,

Wilma's Capital A/C                                    Dr. $5000

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3 0
3 years ago
Intricate Computer Solutions provides services to corporate and individual customers. During the month of​ June, the corporate b
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Answer:

Contribution Margin for each corporate customer= $ 67.5

Explanation:

Intricate Computer Solutions

                          <u><em>Corporate Business Segment   Individual Business Segment</em></u>

Revenue.                        $ 60, 000                                        $ 45,000

<u>Variable costs              $ 33, 000                                          $ 25,100​</u>

<u />

<u>Contribution Margin       $ 27,000                                              $ 20,000 </u>

Less

<u>Fixed costs                    $ 7, 500                                              $ 7, 500       </u>

<u>Operating Income         $19,500                                                $12,500</u>

Contribution Margin for each corporate customer=  Contribution Margin/ No Of Customers  =$ 27000/ 400= $ 67.5

3 0
3 years ago
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