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.
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Answer:
The revenue recognition principle
Explanation:
The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and not when cash is received for the service rendered
For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.
Answer and Explanation:
The journal entry is given below:
Work in process inventory Dr $100,000
To raw material inventory $100,000
(being the usage of the direct material is recorded)
here the work in process is debited as it increased the assets and credited the raw material inventory as it decreased the assets
Answer:
100
Explanation:
The market capitalization rate is 12%
= 12\100
= 0.12
Its expected ROE is 14%
= 14/100
= 0.14
The expected EPS is $3
The Plow back ratio is 80%
= 80/100
= 0.8
The first step is to calculate the dividend payout ratio
= 1-0.8
= 0.2
The expected dividend can be calculated as follows
=0.8×3
= $2.4
The growth rate can be calculated as
follows
= 0.8×0.14
= 0.112×100
= 112%
The value can be calculated as follows
= 2.4/0.12-0.112
= 2.4/0.008
= 300%
Therefore, the P/E ratio can be calculated as follows
= 300/3
= 100
