1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marissa [1.9K]
3 years ago
6

The Holt fund has $500 million in assets, 80 million in debt and 15 million shares at the start of the year. At the end of the y

ear, the fund has $600 million in assets, 40 million in debt and 16 million shares. During the year, investors received $0.80 in distributions per share. The total expense ratio is 0.4%, which is deducted at the end of the year. What is the rate of the return on the fund?
A. 38.54%
B. 27.32%
C. 35,14%
D. 25.81%
E. 34.79%
Business
1 answer:
kow [346]3 years ago
6 0

Answer:

B. 27.32%

Explanation:

First we need to calculate the Net asset value per share at the start and end of the year

NAV at the start of the year = ($500 million - $80 million) / 15 million shares = $28 per share

NAV at the end of the year = ($600 million - ( ($600 million x 0.004) + $40 million ) / 16 million shares = $34.85 per share

Return = (NAV at the end of the year - NAV at the start of the year + Distribution received) / NAV at the start of the year

Return = ( 34.85 - 28 + 0.8 ) / 28 = 0.2732 = 27.32%

You might be interested in
The U.S. Treasury has Kleine Toymakers is introducing a new line of robotic toys, which it expects to grow their earnings at a m
nevsk [136]

Answer:

The present  value of the dividends to be paid out over the next six years if the required rate of return is 15 percent is $6.57

Explanation:

Solution:

Given that

The present value =∑ ⁿ t=1 cf/ (1 +r)t

where cf= cash flow

r =the required rate of return

t = the number of years

Now

The present value will be:

cf₁/(1+r)^1 + cf₂/(1 +)^2 + cf₃/(1+r)3 + cf₄/(1 +r)^4) + cf₅/(1 +r)^5 + cf₆/(1+r)^6

Hence,

cf₁, cf₂ cf₃ = 0 as the firm does not expect to pay dividend in the next three years

Note: Kindly find an attached document of the part of the solution to this given question

6 0
3 years ago
Country A is an extremely efficient producer of tin. However, its climate and terrain makes it difficult to produce corn. Accord
Advocard [28]

Answer:

Theory of comparative advantage states that a country has a comparative in a production of certain commodities if the opportunity cost of producing these commodities is lower than the other countries.

Here, it is given that country A is a efficient producer of tin and there are some difficulties in producing corn. So, country A have to concentrate on the production of Tin and purchase the corn from any other efficient producer.

7 0
3 years ago
Jasmine started a new business in the current year. She incurred $18,000 of start-up costs. How much of the start-up costs can b
liq [111]

Answer:

$5,000

Explanation:

According to the Internal Revenue Service, the amount of deduction for startup costs would be limited to $5,000 if the startup costs are $50,000 or less

However, if the start-up costs were more than $50,000, the deduction would be decreased by the dollar amount.

Since in the given scenario, the $18,000 is the startup cost so she is eligible for the deduction of $5,000

5 0
4 years ago
What is a silence pad?
Verdich [7]
<span>B. A felt layer underneath the tablecloth i hope this help you</span>
7 0
3 years ago
Read 2 more answers
You need a 30-year, fixed-rate mortgage to buy a new home for $245,000. Your mortgage bank will lend you the money at an APR of
ivanzaharov [21]

Answer:

xcmm this question made me think

Explanation:

LOL

6 0
2 years ago
Other questions:
  • When a soft drink company introduced a new peach-flavored drink in a market saturated with colas, it immediately found favor wit
    14·1 answer
  • As dvds become popular substitutes for video cassettes, demand for video cassettes is likely to
    14·1 answer
  • Lorenzo is self employed with an s corporation. he is unmarried and had a net profit for the tax year. what are the tax ramifica
    5·1 answer
  • Arnez Company’s annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to
    6·1 answer
  • Groups are select one:
    7·1 answer
  • The equal credit opportunity act (ecoa) makes it illegal for lenders to refuse credit to or otherwise discriminate against which
    10·1 answer
  • 10 POINTS!
    12·2 answers
  • Early in 2020,Crow Equipment sold 500 Rollomatics at $6,000 each. During 2020, Crow spent $20,000 servicing the 2-year assurance
    15·1 answer
  • ________is the interest that the bank pays you on the principal plus on the_________ that you earned the preceding year.
    10·2 answers
  • Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!