ABC Ventures has raised their $100M fund, ABC Ventures I, with management fees computed based on committed capital. These fees are 2.5 percent per year for all 10 years. Given this description, what are the lifetime fees and investment capital for this fund? O lifetime fees $35M; investment capital -$75M lifetime fees-$25M; investment capital -$75M O lifetime fees $25M: investment capital -$8OM O lifetime fees $20M; investment capital -$80M

ABC Ventures has raised their $100M fund, ABC Ventures I, with management fees computed based on committed capital. These fees are 2.5 percent per year for all 10 years. Given this description, what are the lifetime fees and investment capital for this fund? O lifetime fees $35M; investment capital -$75M lifetime fees-$25M; investment capital -$75M O lifetime fees $25M: investment capital -$8OM O lifetime fees $20M; investment capital -$80M

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose an individual invests $40,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.60 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 5 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual fund over the two-year investment period. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))) Annual return %
Suppose that a $200M VC fund has a management fee of 2.5 percent per year for the first five years, with a reduction of 0.25 percent (25 basis points) in each year thereafter. All fees are paid on committed capital, and the fund has a 10-year life. What are the lifetime fees and investment capital for this fund?
A company has $44,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years? (PV of $1 EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $55,673 $45,760 $55,550 $54,560 $59,862
Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24
A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.
The following expenses will be incurred by company X: next year = P50k, 2015 = P70k , 2016 = P100k and 2017 = P150k. To accumulate these sums, a fund is established by making equal year end deposits starting 2010 to 2015. If the fund earns 15% compounded annually, what is the required amount deposit? Select one: a. P42.375.716 b. P30,486.388 c. P37,455.777 d. P47,375.777
You invest $1500 today and another $2000 18-months from today in a fund earning j4 = 8% for the first 18 months followed by j₂ = 6% thereafter. How much do you have at the end of 4 years? OA. $4007.79 OB. $4377.73 OC. $4274.59 OD. $4276.84 27
$1,000 is invested in a fund at the beginning of the year. The fund rate of return is 8% for the first half of the year, and 10% for the second half. You are given the following methods of determining return, given the indicated transactions: Scenario Return Measure Midyear Transaction I Dollar-weighted $500 deposit II Dollar-weighted $500 withdrawal III Time-weighted $500 deposit IV Time-weighted $500 withdrawal Rank the rates of returns under these scenarios. A. I < II = IV < III B. II < III = IV < I C. III < I = II < IV D. IV < I = II < III E. None of these answers is correct.
If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the fund after 3 years? Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually. What is the compound amount after you invest P22,350 for 5 years and 6 months at 5% compounded semiannually? What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500 that is compounded quarterly at 20% interest? Find the nominal rate which when compounded semiannually and applied to a P50,000 principal will earn an interest of P5,000 after 60 months. In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded monthly? What effective rate is the equivalent to 15% compounded annually?
There are two LBO funds set up for ten years with $1 billion committed capital each. Fund A has the following characteristics: A constant management fee of 2% and carried interest of 80-20. Fund B is as follows: A decreasing management fee (2% in the first 4 years, 1% for the rest), preferred return of 8% per year, 100% catch-up, and carried interest of 70-30. 1. What is the investment capital of fund A and B, respectively? 2. Suppose all investment capitals are invested at t=0 and both funds have the same internal rate of return (per year) of 12% on investment capital. The LP maximizes payoff in year 10. Which fund is better for the LP and how much more can the LP get by choosing the better fund? 3. What is the total payoff (including all fees) for the GP of fund A and B, respectively?
QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate of return on fund portfolio (before any taxes) is 6% per year. How much will an investment of $1000 in the fund grow to after 10 years?
Assume that the DPI of a 10-year fund at the end of its 4th year is 1.1x and that, by that time, $150 million of its $200 million committed capital has been called. The fund follows a standard 2/20 fee structure (European way). What has been the total amount of distributions by the fund by the end of its 4th year?

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