ago, Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive:

ago, Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Deferred sales charge Within the first year 6% In the second year 5% In the third year 4% In the fourth year 3% In the fifth year 2% In the sixth year 1% After the sixth year 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)?| Calculate the amount that Max will receive:

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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Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $11 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 5%. Brandtly's WACC is 11%, the market value of its debt and preferred stock totals $60 million, the firm has $15 million in non-operating assets, and it has 14 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. b. What is the…
A pension fund manager decides to invest a total of at most $40 million in U.S. Treasury bonds paying 4% annual interest and in mutual funds paying 6% annual interest. He plans to invest at least $5 million in bonds and at least $25 million in mutual funds. Bonds have an initial fee of $100 per million dollars, while the fee for mutual funds is $200 per million. The fund manager is allowed to spend no more than $7000 on fees. How much should be invested in each to maximize annual interest? What is the maximum annual interest? The amount that should be invested in Treasury bonds is $ million and the amount that should be invested in mutual funds is $ million.
еВook Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $3 million, $6 million, $10 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 11%, the market value of its debt and preferred stock totals $52 million, the firm has $15 million in nonoperating assets, and it has 8 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. b. What is…
Suppose ABC Mutual Fund had no liabilities and owned only four stocks as follows: Stock Shares Price Market Value 1,100 $1 $12,100 1,300 15 19,500 Y 1,500 24 36,000 800 16 12,800 $80,400 The fund began by selling $54,000 of stock at $9.00 per share. What is its NAV? Do not round intermediate calculations. Round your answer to the nearest cent.
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is Interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $12 million, and $14 million. After the fourth year, free cash flow is projected to grow at a constant 4%. Brandtly's WACC is 10%, the market value of its debt and preferred stock totals $74 million, the firm has $15 million in nonoperating assets, and it has 9 million shares of common stock outstanding. a. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000. b. What is the…
The Market Edge Mutual Fund charges a 3 percent back-end load. Todd invested $2,500 in this fund sixteen years ago. Today, the total NAV value of his shares is $9,948 so he decided to withdraw the entire amount and take a month's vacation to tour South America. How much did Todd receive when he made his withdrawal? O $9,948.00 O $10,246.44 O $9,873.00 O $10,023.00 O $9,649.56
You invest in a mutual fund that charges a 3% front-end load, 1% total annual fees, and a 0% back-end load on Class A shares. The same fund charges a 0% front-end load, 1% total annual fees, and a 2% back-end load on Class B shares. What are the total fees in year 1 on a Class B investment of $20,000 if you redeem shares with no growth in value? $600 $902 $596 $885
Brandtly Industries invests a large sum of money in R&D; as a result, it retains and reinvests all of its earnings. In other words, Brandtly does not pay any dividends, and it has no plans to pay dividends in the near future. A major pension fund is interested in purchasing Brandtly's stock. The pension fund manager has estimated Brandtly's free cash flows for the next 4 years as follows: $2 million, $5 million, $12 million, and $15 million. After the fourth year, free cash flow is projected to grow at a constant 3%. Brandtly's WACC is 11%, the market value of its debt and preferred stock totals $52 million; the firm has $14 million in non-operating assets; and it has 8 million shares of common stock outstanding. What is the present value of the free cash flows projected during the next 4 years? Do not round intermediate calculations. Round your answer to the nearest dollar. Write out your answers completely. For example, 13 million should be entered as 13,000,000.$ What…
You currently own shares in Berkshire Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization fund managed by Wonderland Investment Group (WIG). Yourbroker says that this fund will provide significant diversification benefits for your existing holdings. She gives you the following statistics based on the performance of the two funds over the last year. Please don,t copy wrong answer.Write correct answer.Answer must be correct. and do all calculation. its carry huge .Answer follow image. Must show all calculation.
You invested in the no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at the net asset value of $19.44 per share. The fund distributed dividends of $1.88 and capital gains of $2.12. Today, the NAV is $21.36. What was your holding period return?
Here are the NAVS for a no-load mutual fund that paid no distributions: April 2 NAV=$11.5 Apr 3 NAV=$12.5 Apr 4 NAV=$12.1 Apr 5 NAV=$13.5 What is your return if you buy the fund on April 2 at 10am and sell it on Apr 4 at 5pm? 17.39% 5.22% 8% -3.2%
Need both PARTS.... attempt if you will solve both Parts.... thanks

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