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aliya0001 [1]
3 years ago
9

15. Consider a no-load mutual fund with $400 million in assets, 50 million in debt, and 15 million shares at the start of the ye

ar; and $500 million in assets, 40 million in debt, and 18 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share, and capital gains distributions of $0.30 per share. Assuming that the fund carries no debt, and that the total expense ratio is 0.75%, what is the rate of return on the fund
Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

12.09%.

Explanation:

Calculation to determine the rate of return on the fund

First step is to calculate the beginning year NAV

Beginning year NAV = ($400 million assets - 50 million debt) / 15 million shares

Beginning year NAV = 23.33

Second step is to calculate the ending year NAV

Ending year NAV = ($500 million assets - (500*0.75% expense) - 40 million debt] / 18 million shares

Ending year NAV =[456.25/18 million shares]

Ending year NAV =25.35

Now let calculate the return using this formula

Return = (Ending NAV -beginning NAV + Capital gain + income) / Beginning NAV)

Let plug in the formula

Return = (25.35-23.33+0.30+0.50)/23.33

Return = 12.09%

Therefore the rate of return on the fund is 12.09%

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Saint Nick Enterprises has 17,500 shares of common stock outstanding at a price of $69 per share. The company has two bond issue
mihalych1998 [28]

Answer:

total weight of debt = 0.343 or 34.3%

Explanation:

stock's market value = 17,500 x $69 = $1,207,500

bond₁'s market value = $250,000 x 101.5% = $256,750

bond₂'s market value = $350,000 x 106.5% = $372,750

total market value of the firm = $1,837,000

weighted capital structure:

                                       market value            weight

stocks                             $1,207,500               0.657

bond₁                              $256,750                  0.140

bond₂                              $372,750                  0.203

total                                $1,837,000                 1

total weight of debt = 0.343 or 34.3%

8 0
3 years ago
List the following in order of most to least liquid
Otrada [13]

Answer:

What  following me dude

Explanation:

7 0
3 years ago
Around the world oil is priced consistently in United States dollars. In economic terms this is an example of:
Zina [86]

Answer: unit of account

Explanation:

The unit of account is function of money which refers to the standard monetary unit of measurement of a good or service.

Since oil is priced consistently in United States dollars around the world, this means that dollars is the standard monetary unit of measurement and is therefore, the unit of account.

8 0
2 years ago
Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which beg
Maurinko [17]

Answer:

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According to the IRS's Foreign Earned Income Exclusion (and Requirements) a US citizen can claim up to $105,900 (in 2019) of his gross income to be excluded from gross income in the US only if that person resided in the foreign country for at least 330 days in the last year.

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The correct answer is "ending inventory of one period is the beginning inventory of the next period."

An inventory error not only affects the current year's cost of goods sold, gross profit, net income, current assets, and equity, but also the next period's statements because ending inventory of one period is the beginning inventory of the next period.

That is why the manager has to be strict regarding the inventory of a company. Inventory has a cost that can be translated into money. So accountants have to be perfect regarding the inventory. So yes, ann error in keeping the inventory affects the company in that the ending inventory of one period is the beginning inventory of the next period. An internal audit can reveal the mistakes in accurately keeping the inventory. So it is better to put extra attention in the process so nothing wrong would be revealed after the audit.

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