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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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kotykmax [81]

The Bank of King's Landing would realize an unexpected benefit when the actual rate of inflation is lower than the expected rate of inflation.

<h3>Effect of Change in Inflation Rate on Lending</h3>

In monetary economics, when the actual rate of inflation is lower than projected, the lender or bank benefits since it is similar to receiving a bonus.

The lender or the bank, on the other hand, will lose if the rate of inflation is higher than predicted.

As a result, when the actual rate of inflation is lower than the forecast rate of inflation, the Bank of King's Landing will gain unexpectedly.

The reason for this is that the amount they receive will be worth more than they anticipated when they made the loans to the lords of Winterfell.

Learn more about how inflation affects lending here: brainly.com/question/14988663.

7 0
2 years ago
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Damm [24]

Answer:

True

Explanation:

The term business operating system (BOS) refers the to standard, enterprise-wide collection of business processes that are used in many diversified industrial companies.

It refers to a collection of the business processes that can be used to boost the efficiency of each function of the business. It includes the fundamental framework, policies and routines which are needed to operate and grow a business.

It has been adopted by companies like; The Lego Group, Toyota Motor Corporation and The Boeing Company.

8 0
3 years ago
arrugia Corporation produces two intermediate products, A and B, from a common input. Intermediate product A can be further proc
kodGreya [7K]

Answer:

if the firm processes A and B into X and Y, it will lose $25

Explanation:

total costs of producing product A and B = $90 (common input) + $36 (processing) = $126

selling price of A and B = $53 + $113 = $166

profit of selling A and B = $166 - $126 = $40

if A and B are processed further, the cost of X and Y = $126 + $33 + $66 = $225

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8 0
3 years ago
Which type of variance causes operating income to be greater than the budgeted operating income?
ivann1987 [24]

Favorable variance is the variance causes operating income to be greater than the budgeted operating income.

A favorable variance is wherein real income is greater than budget, or real expenditure is less than budget. That is similar to a surplus in which expenditure is much less than the available earnings.

Is Favorable variance usually accurate?

Favorable variances are defined as either generating greater revenue than expected or incurring fewer fees than expected. Damaging variances are the other. Much less revenue is generated or greater prices incurred. Either may be correct or terrible, as these variances are based on a budgeted amount.

How do you inform if a variance is favorable variance or destructive?

If sales have been better than expected, or expenses were decrease, the variance is  favorable variance. If sales have been decrease than budgeted or costs were better, the variance is detrimental.

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7 0
2 years ago
In a planned economy, prices of commodities are controlled by _________.
GalinKa [24]

The correct answer is C. The government

Explanation:

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4 0
3 years ago
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