You invested $25,000 in a mutual fund at the beginning of the year when the NAV was $33.16. At the end of the year the fund paid $.27 in short-term distributions and $.44 in long-term distributions. If the NAV of the fund at the end of the year was $37.81, what was your return for the year?
Q: A stock is currently priced at $52 and will move up by a factor of 1.14 or down by a factor of .90…
A: Option Market is a Stock Market Startegy. Under which investor will not purchase the share of the…
Q: Doisneau 20 year bonds have an annual coupon interest of 7 percent, make interest payments on a…
A: Par value of bond (FV) = $ 1000Coupon rate = 7%Semi annual coupon amount (C) = 1000*0.07/2 = $…
Q: You are operating an old machine that is expected to produce a cash inflow of $6,000 in each of the…
A: EAC means net annual cost of operating the machine. With the passage of time, the value of money…
Q: What is the price of a bond with a coupon rate of 4% making semi-annual payments with a face value…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Cost of Bank Loans Del Hawley, owner of Hawley's Hardware, is negotiating with First City Bank for a…
A: Effective annual rate (EAR) or annual percentage yield (APY) refers to the rate of interest that is…
Q: Calculate the company cost of capital. (Ignore taxes. Do not round intermediate calculations. Enter…
A: The weighted average cost of capital measures the typical cost a business pays to finance its…
Q: A portfolio earned 16% in the past year. The target beta is 1.0 and the actual beta was 1.20. The S.…
A: Expected portfolio return = 16%Risk-free rate= 2%Actual beta= 1.2Target beta=Market return=…
Q: State of Economy Bust Boom Probability of State of Economy 0.30 0.70 Bust Security Returns if State…
A: Expected return is defined as the amount of money an investor could earn or lose on an investment at…
Q: Assume a machine costs $250,000 and lasts five years before it is replaced. The operating cost is…
A: Present value annuity factor is calculated as follows:-PVAF = wherePVAF = present value annuity…
Q: What is the NPV of this project? (Do not round intermediate calculations and round your answer to 2…
A: Net present value is determined by deducting the current value of cash flows from the initial…
Q: Answer should be 2,827.12
A: First, let us list the values we know. The loan is an interest only loan in the first 5 years, so…
Q: Green & Company is considering investing in a robotics manufacturing line. Installation of the line…
A: NOV is also known as Present Value. It is a capital budgeting technique which helps in decision…
Q: If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's…
A: The capital asset pricing model aids analysts and investors in calculating the expected return on…
Q: Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting…
A: VALUE OF STOCK FORMULA:where.r= return of equityg= growth rateThe intrinsic value of companies said…
Q: 20. How much would the total repayments differ between a fully amortizing 25 year loan for $500,000…
A: Repayments of loan or amortization of loan refers to the systematic payment of loan principal and…
Q: Del Hawley, owner of Hawley's Hardware, is negotiating with First City Bank for a 1-year of $93,000.…
A: Effective annual rate (EAR) or annual percentage yield (APY) refers to the rate of interest that is…
Q: A company issued $30 million of face value bonds, with a coupon rate of 5% payable semi-annually.…
A: Bonds are debt instruments issued by companies. The company that issues the bond pays periodic…
Q: Chapter 4 Problem 11 a. Use the information below from Tournament Sporting Goods's annual financial…
A: Variables in the question: TOURNAMENT SPORTING GOODS ($ thousands)20132014201520162017Sales…
Q: You are offered an annuity that will pay $4,250 per quarter for 8 years (first payment made today).…
A: Annuity worth refers to an amount required today for the fulfillment of payment of all series of…
Q: what are the student's monthly payments on the loans after graduation
A: Non-Subsidized Student Loan per year = $11,000Time Period of Non-Subsidized Student Loan = 4…
Q: You deposit $64000 into an account which pays 5% compounded monthly. You wish to make semiannual…
A: Amount that can be withdrawn from account depends on the period of withdrawal and interest rate of…
Q: Calculate the average daily balance and finance charge on the statement below. Note: Round your…
A: In the Average daily balance method, the daily balance in the credit card account is calculated and…
Q: A project requires an initial investment of $100,000 and is expected to produce a cash inflow before…
A: Companies can allocate their limited resources (capital) to projects or assets with the highest…
Q: Which bond is more sensitive to an interest rate change of 1 percent? Bond A: Yield to maturity =…
A: Duration of bond show how much is bond is sensitive to interest rate changes and more is the…
Q: Refer to the table below: Expected return, E(R) Standard deviation, o Correlation 3 Doors, Inc. 18%…
A: Standard deviation is indicated as the variations average amount in the set of data. It is helpful…
Q: You own the portfolio below, what is your expected return? % of Portfolio Expected Return 50% 15%…
A: A portfolio refers to a mix of assets that are held by an investor to diversify the risk associated…
Q: Meridian Manufacturing, Inc.'s stock has had the following annual returns over the past 5 years:…
A: CAGR stands for Compound Annual Growth Rate. It is a financial metric used to measure the annual…
Q: You are responsible to manage an IS project with a 4-year horizon. The annal cost of the project is…
A: Return on investment is the income earned on an investment throughout the defined investment…
Q: In which of the following tables would all present value factors be less than or equal to one?…
A: Solution:Present value factor refers to the discounted value of $1 discounted at “r%” rate of…
Q: What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?
A: The equivalent annual cost is used to assess the total cost of various financing or investment…
Q: Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect…
A: In the given case, we have provided the annual dividend and the expected growth rate of dividend…
Q: Sales/Total assets Return on assets (ROA) Return on equity (ROE) Calculate Caulder's profit margin…
A: We need to use Du Pont analysis where the asset turnover, i.e., the sales to assets value is…
Q: Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…
A: NPV is also known as Net present Value. It is a capital budgeting technique which helps in decision…
Q: is targeting specific debt levels in the future. Cost of de ate is 4% and the expected market risk…
A: Cost of debt = 7%Risk free rate = 4%Expected market risk premium = 6%Unlevered asset beta = 1
Q: corporation hopes to withdraw $9,000 at the end of each year for six years from a fund that earns 7%…
A: Variables in the question:Withdrawal each year (PMT)=$9000 n=6 yearsRate=7%
Q: Which of the following independent projects should the company accept?
A: IRR is the internal rate of return. This is the return % that the project generates. If the IRR is…
Q: Problen 9.11 (Nonconstant (nowth) Computech Corporation is expanding rapidly and currently needs to…
A: Dividend discount model refers to the model to determine the value of firm using the dividend payout…
Q: Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements…
A: Initial cost = $1,300,000Sales = $4,500,000Manufacturing cost and operating expenses = 80% of…
Q: You deposit $1,700 at the end of each year into an account paying 8.6 percent interest. a. How much…
A: ParticularAmountDeposits (PMT) $ 1,700.00Interest Rate (RATE)8.60%No. of Deposits (NPER)16
Q: Chaos company purchased a new truck at the beginning of the year for $60,000. The truck has a useful…
A: Depreciation is decrease in value of equipment with the time and with use of equipment with time.
Q: You are asked to analyze the following scenario and determine its value. What most you would be…
A: Maximum price willing to pay would be the present value of cash flow from the project based on the…
Q: Haulsee Inc. pays no dividend currently but is expected to start paying a small dividend next year.…
A: According to Capital asset pricing model ,ke = Rf+[b*(Rm-Rf)]whereke= cost of equityRf = risk free…
Q: A project has an initial cost of $40,000, expected net cash inflows of $11,000 per year for 8 years,…
A: An indicator used to rank investment options according to the viability of the projects is the…
Q: Lalaland Inc is considering a project that requires an investment of $21,000 in NWC (in year 0) and…
A: Net Present Value (NPV) is one of the tools used in capital budgeting to make an analysis of the…
Q: A new computer system will require an initial outlay of $16.250, but it will increase the firm's…
A: Calculation of Net Present Value = Present Value of Future Cash Flows @ 8% - Initial Outlay…
Q: A jeweler buys a ring from a jewelry maker for $125. He marks up the price by 135% for sale in his…
A: Variables in the question:Cost of ring=$125Marks up the price by 135%Sales tax=7.5%
Q: What is the growth rate of the following stream of cash flows? YEAR CASH FLOW 2018 R6 010 2017 R5…
A: Solution:Growth rate means the rate at which the stream of cash flows is rising.So, growth rate =…
Q: how much money will your retirement account have at the end of 35 years if the interest in…
A: We can determine the amount using the FV of ordinary annuity formula given below:In the formula…
Q: Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales.…
A: Variables in the question: Possible OutcomesAdditional Sales in UnitsProbabilitiesIneffective…
Q: Someone offers an investment opportunity that will pay you $725 at the end o next 17 years. How much…
A: Maximum value is the present value of cash flow from the annuity based on the time value of money…
You invested $25,000 in a mutual fund at the beginning of the year when the NAV was $33.16. At the end of the year the fund paid $.27 in short-term distributions and $.44 in long-term distributions. If the NAV of the fund at the end of the year was $37.81, what was your return for the year?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Corporate Fund started the year with a net asset value of $17.80. By year - end, its NAV equaled $16.30. The fund paid year - end distributions of income and capital gains of $2.20. What was the (pretax) rate of return to an investor in the fund?Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What was the (pretax) rate of return to an investor in the fund?Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Year Stivers Trippi Mean annual return (to 3 decimals) Which mutual fund performed better? $15,000 $16,100 $17,000 $18,000 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi The Trippi mutual fund V ✔ 7.847 % 9.977 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 % $10,500 $11,900 $12,900 $13,900 Hint(s) $5,700 $6,300 $7,000 $7,600 $8,600 $9,200 $9,900 $10,600 Check
- Suppose that at the beginning of 2004 you invested $l0,000 in the Stivers mutual fund and $5000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Which mutual fund performed better? Year Stivers Trippi 2004 11,000 5,600 2005 12,000 6,300 2006 13,000 6,900 2007 14,000 7,600 2008 15,000 8,500 2009 16,000 9,200 2010 17,000 9,900 2011 18,000 10,600You invested $90,000 in a mutual fund at the beginning of the year when the NAV was $54.3. At the end of the year, the fund paid $.40 in short-term distributions and $.57 in long-term distributions. If the NAV of the fund at the end of the year was $63.94, what was your return for the year? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?
- Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. Required: What was the rate of return to an investor in the fund? (Round your answer to 2 decimal places.) Rate of return %Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Mean annual return (to 3 decimals) 7.847 Which mutual fund performed better? The Trippi mutual fund % 9.977 Year Year 1 Year 2 Year 3 $12,900 Year 4 $13,900 Year 5 $15,000 Year 6 $16,100 Year 7 $17,000 Year 8 $18,000 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi % Stivers $10,500 $11,900 Trippi $5,700 $6,300 $7,000 $7,600 $8,600 $9,200 $9,900 $10,600Twelve months ago you purchases shares of a no-load mutual fund for $22.25 per share. The fund distributed cash dividends of $0.90 and capital gains of $1.25 per share. If the net asset value is $24.45, what was the annual rate of return?
- Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Mean annual return (to 3 decimals) % Year Year 1 $10,700 Year 2 $11,900 Year 3 $12,900 Year 4 $13,900 Year 5 $15,000 Year 6 $16,000 Year 7 $17,100 Year 8 $18,100 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi % Stivers Trippi $5,600 $6,400 $7,000 $7,600 $8,600 $9,300 $9,900 $10,700A closed-end fund starts the year with a net asset value of OMR10. By year end, NAV equals OMR10.10. At the beginning of the year, the fund was selling at a 3% premium to NAV. By the end of the year, the fund is selling at a 6% discount to NAV. The fund paid year end distributions of income and capital gains of OMR2.50. What is the rate of return to an investor in the fund during the year?Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Year Stivers Trippi Year 1 $11,000 $5,600 Year 2 $12,000 $6,400 Year 3 $12,700 $7,000 Year 4 $13,800 $7,600 Year 5 $15,000 $8,600 Year 6 $16,000 $9,300 Year 7 $17,200 $9,900 Year 8 $18,500 $10,700 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi Mean annual return (to 3 decimals) Which mutual fund performed better? Select your answer -