Question
In: Finance
A fund is established on 7/1/2017 with a $100 million initial investment. On 12/31/2017 the fund...
A fund is established on 7/1/2017 with a $100 million initial investment. On 12/31/2017 the fund has grown to $120 million due to capital gains. An additional $100 million is invested on 1/1/2018, bringing the fund to $220 million. No cash inflows or outflows occur in 2018, and on 12/31/18 the fund has grown to $231 million due to capital gains and reinvested dividends. On 1/1/2019, $81 million is withdrawn from the fund, leaving a balance of $150 million. On 7/1/2019, the fund is closed put with a value of $168 million distributed to investors.
a. Calculate the time-weighted rate of return for the fund.
b. Calculate the money-weighted rate of return for the fund.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A fund is established on 7/1/2017 with $100 million initial investment. On 12/31/2017 the fund has...
A fund is established on 7/1/2017 with $100 million initial
investment. On 12/31/2017 the fund has grown to $120 million due to
capital gains. An additional $100 million is invested on 1/1/2018,
bringing the fund to $220 million. No cash inflows or outflows
occur in 2018, and on 12/31/18 the fund has grown to $231 million
due to capital gains and reinvested dividends. On 1/1/2019, $81
million is withdrawn from the fund, leaving a balance of $150
million. On 7/1/2019,...
Tuscin Capital is a hedge fund with an initial investment capital of $100 million. In its...
Tuscin Capital is a hedge fund with an initial investment
capital of $100 million. In its first year, the fund earns a return
of 30%. The fund charges a 2% management fee based on assets under
management at the end of the year and a 20% incentive fee with a
hurdle rate of 4% (applicable on the beginning capital position for
the year). The ending values of the fund (before fees for the
current year) for the first 3 years...
Tuscin Capital is a hedge fund with an initial investment capital of $100 million. In its...
Tuscin Capital is a hedge fund with an initial investment
capital of $100 million. In its first year, the fund earns a return
of 30%. The fund charges a 2% management fee based on assets under
management at the end of the year and a 20% incentive fee with a
hurdle rate of 4% (applicable on the beginning capital position for
the year). The ending values of the fund (before fees for the
current year) for the first 3 years...
A 3-year project requires an initial investment of $100 million (CF0=-100), and will return cash infows...
A 3-year project requires an initial investment of $100 million
(CF0=-100), and will return
cash infows of $70 million, $50 million, and $20 million at the end
of the years 1, 2, and
3, respectively. Assuming a weighted average cost of capital of
10%, what is the discounted
payback period for this project?
(Please show work and explain on paper)
On December 31, 2017, Berclair Inc. had 360 million shares of common stock and 12 million...
On December 31, 2017, Berclair Inc. had 360 million shares of
common stock and 12 million shares of 9%, $100 par value cumulative
preferred stock issued and outstanding. On March 1, 2018, Berclair
purchased 40 million shares of its common stock as treasury stock.
Berclair issued a 5% common stock dividend on July 1, 2018. Four
million treasury shares were sold on October 1. Net income for the
year ended December 31, 2018, was $600 million.
Also outstanding at December...
Suppose that instead of funding the $100 million investment in 12 percent British loans with CDs...
Suppose that instead of funding the $100 million investment in
12 percent British loans with CDs issued in the United Kingdom, the
FI manager in problem 20 hedges the foreign exchange risk on the
British loans by immediately selling its expected one-year pound
loan proceeds in the forward FX market. The current forward
one-year exchange rate between dollars and pounds is $1.53/£1. a.
Calculate the return on the FI’s investment portfolio (including
the hedge) and the net return for the...
XYZ Company will invest with an initial investment of $ 1 million. The assumption of a...
XYZ Company will invest with an
initial investment of $ 1 million. The assumption of a market
interest rate of 5% and cash flow for 5 years is expected as in the
table below:
year
Cash Flow
1
425.000
2
384.000
3
321.500
4
282.500
5
200.000
Calculate the payback period and Net
Present Value (NPV)
Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017: 12/31/2018 12/31/2017...
Below are comparative balance sheets
for Tigger Inc. at December 31, 2018 and 2017:
12/31/2018
12/31/2017
Cash
$ 21,900
$ 10,000
Accounts receivables (net)
50,000
45,000
Inventory
64,000
70,000
Land
0
32,000
Plant assets
580,000
560,000
Accumulated depreciation
(103,000)
(100,000)
$612,900
$617,000
Accounts payable
$ 90,000
$ 93,000
Salaries payable
8,000
4,000
Dividends payable
1,700
2,300
Payable for general & admin expenses
18,000
10,000
Income tax payable
9,050
...
When is it possible to fund a million dollar balance in a newly established IRA?
When is it possible to fund a million dollar balance in a newly
established IRA?
Date Close 7/3/2017 898.700012 7/5/2017 911.710022 7/6/2017 906.690002 7/7/2017 918.590027 7/10/2017 928.799988 7/11/2017 930.090027 7/12/2017 943.830017...
Date
Close
7/3/2017
898.700012
7/5/2017
911.710022
7/6/2017
906.690002
7/7/2017
918.590027
7/10/2017
928.799988
7/11/2017
930.090027
7/12/2017
943.830017
7/13/2017
947.159973
7/14/2017
955.98999
7/17/2017
953.419983
7/18/2017
965.400024
7/19/2017
970.890015
7/20/2017
968.150024
7/21/2017
972.919983
7/24/2017
980.340027
7/25/2017
950.700012
7/26/2017
947.799988
7/27/2017
934.090027
7/28/2017
941.530029
7/31/2017
930.5
8/1/2017
930.830017
8/2/2017
930.390015
8/3/2017
923.650024
8/4/2017
927.960022
8/7/2017
929.359985
8/8/2017
926.789978
8/9/2017
922.900024
8/10/2017
907.23999
8/11/2017
914.390015
8/14/2017
922.669983
8/15/2017
922.219971
8/16/2017
926.960022
8/17/2017
910.97998
8/18/2017
910.669983
8/21/2017
906.659973
8/22/2017
924.690002
8/23/2017
927
8/24/2017
921.280029
8/25/2017
915.890015...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Explain how biology, culture, and their interaction shape sex differences.
- Write a program that computes the tax and tip on a restaurant bill for a patron...
- clear all close all % %*******Parameter Settings******** %********************************* Fs=8192; %Sampling frequency (MATLAB's default) Ts=1/Fs; %Sampling time...
- Name a business that you believe has experienced declining costs attributable to computerization. Were variable costs...
- With C++, 1. Assume we use two linked lists that represent Set A and Set B...
- A beam of light shines on an equilateral glass prism at an angle of 45∘ to...
- This is an intro to python question. #Write a function called search_for_string() that takes two #parameters,...
ADVERTISEMENT