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kifflom [539]
3 years ago
14

he Yachtsman Fund had NAV per share of $36.12 on January 1, 2016. On December 31 of the same year, the fund's NAV was $39.71. In

come distributions were $0.64, and the fund had capital gain distributions of $1.13. Without considering taxes and transactions costs, what rate of return did an investor receive on the Yachtsman Fund last year?
Business
1 answer:
photoshop1234 [79]3 years ago
7 0

Answer: 14.84%

Explanation:

To calculate the rate of return the investors received we will do a simple return formula to find out by how much, in terms of the Opening NAV, the fund has increased.

To find out how much the fund has increased by we can add up all the figures then deduct the opening balance.

= 39.71 + 0.64 + 1.13 - 36.12

= $5.36

$5.36 is the how much the fund has increased by.

Expressing it in percentage of the opening NAV per share we have,

= 5.36/36.12

= 0.14839424141

= 14.84%

14.84% is the rate of return that an investor received on the Yachtsman Fund in 2016.

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The following information is available for Rodriguez Industries:
shepuryov [24]

Answer:

$183,200

Explanation:

Given that,

Direct labor = $86,000

Total current manufacturing costs = $381,000

Manufacturing overhead is applied to production:

= 130% of direct labor cost

= 1.30 × $86,000

= $111,800

Total manufacturing costs = Direct material + Direct labor + Manufacturing overhead.

$381,000 = Direct material + $86,000 + $111,800

Direct material = $381,000 - $86,000 - $111,800

                         = $183,200

Therefore, the amount of direct materials used in production is $183,200.

8 0
3 years ago
Behavioral economistsLOADING... attribute some consumer behavior to the endowment effect. Which of the following is an example o
mestny [16]

Answer:  Option C

Explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.

Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.  

   

6 0
3 years ago
Investigate any Five criteria that the project must demonstrates
Andru [333]

The project must demonstrate, one, the problem you are trying to solve. Two, the solution of the problem, how innovative it is and compelling. Three, what did you learn throughout the project. Four, accuracy of the conclusion of the project. And lastly, how were you able to effectively present and demonstrate the project to your audience.

4 0
2 years ago
Fleury Security Limited (FSL) is projected to have earnings per share (EPS) of $3.50 next year, and the firm’s dividends are 30%
ra1l [238]

Answer and Explanation:

The computation is shown below:

a) For ROE of the company

As we know that

Debt ratio = 1 - (1 ÷  Equity multiplier)

0.4 = 1 - (1 ÷ Equity multiplier)

(1 ÷ Equity multiplier) = 0.6

Equity multiplier = 1 ÷ 0.6

= 1.6667

Now ROE is  

ROE = Net Profit Margin × Total Asset Turnover × Equity multiplier

= 10% × 0.9 × 1.6667

= 15%

b) For the Price of FSL shares

Expected Dividend next year (D1) = Projected EPS × Dividend payout ratio

= $3.50 × 30%

= $1.05  

And, Required Return(ke) = 12.4%

Growth Rate(g) = ROE × (1 - Dividend payout ratio)

= 15% × (1 - 0.30)

= 10.5%

And finally the Price of STock:-

= D1 ÷ (ke - g)

= $1.05 ÷ (0.124 - 0.105)

= $55.26

C. For  Present Value of Growth Opportunity(PVGO)

As we know that

Present Value of Growth Opportunity(PVGO) = Stock Price - (EPS ÷ Ke)

= $55.26 - ($3.50 ÷ 12.4%)

= $27.03

7 0
3 years ago
Mitchell Corporation bought equipment on January 1, 2012 .The equipment cost $120,000 and had an expected salvage value of $20,0
murzikaleks [220]

Answer:

$100,000

Explanation:

Depreciable cost refers to the portion of an asset's costs that will be spread throughout the use-life of the asset. It is the amount to depreciated over the gainful life of the asset.  

Depreciable cost is calculated by subtracting salvage value from the original cost of the asset. Salvage value is also the scrap value.

Depreciable cost = asset cost - salvage value

Depreciable cost= $120,000 - $20,000

Depreciable cost =$100,000

4 0
3 years ago
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