Question

In: Finance

The European Growth Fund has $820 million in assets and $76,000 in liabilities. There are 30.5...

The European Growth Fund has $820 million in assets and $76,000 in liabilities. There are 30.5 million shares outstanding. The charge a 4.4% front-end load. What is the market price of the fund?

a. 26.47

b. 29.74

c. 27.54

d.28.12

e. 26.08

Solutions

Expert Solution

NAV = Asset - liabilities
=$820000000-76000
=$819924000
NAV per share = $819924000/30500000
=26.8827
Market price = NAV /(1- Front end)
=26.8827/(1-0.044)
=$28.12
Correct Option :d.28.12

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A closed-end fund has total assets of $450 million and liabilities of $250,000. Currently, 25 million...
A closed-end fund has total assets of $450 million and liabilities of $250,000. Currently, 25 million shares are outstanding. What is the NAV of the fund? If the shares currently sell for $18.15, what is the premium or discount on the fund? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the NAV answer to 2 decimal places. Enter the premium or discount as a percent rounded to 2 decimal places.) Net asset...
Suppose a bank has $100 million in assets, and $90 million in liabilities. If assets increase...
Suppose a bank has $100 million in assets, and $90 million in liabilities. If assets increase 5%, and liabilites increase 10%, then how much did bank’s equity change? (Answer is 6.0) please show me how with work!!!
A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50...
A partnership has the following account balances: Cash, $76,000; Other Assets, $570,000; Liabilities, $258,000; Nixon (50 percent of profits and losses), $180,000; Cleveland (30 percent), $130,000; Pierce (20 percent), $78,000. The company liquidates, and $16,500 becomes available to the partners. Who gets the $16,500? Determine how much of this amount should be distributed to each partner. (Do not round intermediate calculations.) Nixon Cleveland Pierce Safe payments:
City Street Fund has a portfolio of $415 million and liabilities of $15 million. a. If...
City Street Fund has a portfolio of $415 million and liabilities of $15 million. a. If there are 80 million shares outstanding, what is net asset value? Net asset value            $ b-1. If a large investor redeems 3 million shares, what happens to the portfolio value? (Enter your answer in millions.) Portfolio value (Click to select)increasesdecreases to $  million. b-2. If a large investor redeems 3 million shares, what happens to shares outstanding? (Enter your answer in millions.) Shares outstanding (Click...
City Street Fund has a portfolio of $490 million and liabilities of $10 million. a. If...
City Street Fund has a portfolio of $490 million and liabilities of $10 million. a. If there are 30 million shares outstanding, what is the net asset value? Net Asset Value: b-1. If a large investor redeems 1 million shares, what happens to the portfolio value? (Enter your answer in millions.) Portfolio value ___________ to _________ million b-2. If a large investor redeems 1 million shares, what happens to shares outstanding? (Enter your answer in millions.) Portfolio value ___________ to...
Standard bank has assets of $ 150 million, liabilities of $ 135 million and equity of...
Standard bank has assets of $ 150 million, liabilities of $ 135 million and equity of $ 15 million. It asset duration is six years and the duration of the liabilities is for four years. Standards bank wishes to hedge the balance sheet with 20-year T-bond futures contracts, witch are currently trading at $95 per $100 face value and duration of 10.37 year. Note that T-bond futures are sold in $100000 face value per contract. What is the duration gap...
A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million...
A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million to its investment advisers and owes another $2 million for rent, wages due, and miscellaneous expenses. The fund has 15 million shares. What is the NAV per share of this fund? 3.333333333 3 3.2 3.133333333
Suppose that you manage a pension fund that has liabilities of $2 million, $4 million, $8...
Suppose that you manage a pension fund that has liabilities of $2 million, $4 million, $8 million, and $10 million coming due in 1, 2, 3, and 4 years, respectively. You want to invest in bonds whose cash flows will exactly match the liabilities. The following bonds are available: 1-year, 2-year, 3-year, and 4-year annual-coupon bonds selling at par; the yields (YTMs) are 1%, 2%, 3%, and 4%, respectively. What's the necessary dollar amount of investment in 1-year bond today?
Consider a bank that has the following assets and liabilities: Loans of $100 million with a...
Consider a bank that has the following assets and liabilities: Loans of $100 million with a realized rate of 5% Security holdings of $50 million earning 10% interest income Reserves of $10 million Savings accounts of $100 million interest of 2.5% Checking deposits of $30 million which pay no interest Determine the profits for this bank. (Hint: The bank earns income, or revenues, not only from its loans but also from any securities it holds!)
Consider a bank that has the following assets and liabilities: Loans of $100 million with a...
Consider a bank that has the following assets and liabilities: Loans of $100 million with a realized rate of 5% Security holdings of $50 million earning 10% interest income Reserves of $10 million Savings accounts of $100 million interest of 2.5% Checking deposits of $30 million which pay no interest Set up the balance sheet for this bank. (Hint: Remember that assets + liabilities = equity or net worth!) Determine the profits for this bank. (Hint: The bank earns income,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT