Last year David McCullough of La Junta, CO, bought the XYZ mutual fund, which has total assets of $240 million, liabilities of $10 million, and 15 million shares outstanding. If the current price is $18, is this a good deal? (Yes or No
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- The previous solution that was provided is incorrect. The correct answer is $250,000 and I need to know how to calculate this!! Bindex has net income of $2,500,000 and 1,000,000 shares outstanding. Its common stock is currently selling for $40 per share. It needs to raise $3,610,000 in funds for a new asset. Its investment dealer plans to sell an issue of common stock to the public for $38 with a spread of 5% on offer price. How much must Bindex's after-tax income increase to prevent dilution of EPS?× Last year you bought the Viking Mutual Fund, which has total assets of $240 million, liabilities of $10 million, and 15 million shares outstanding. a) What is the net asset value per share? b) If the current price is $18, is this a good deal? (Yes or No) Round to the nearest cent. DO NOT INCLUDE COMMAS OR $. SubmitLast year David McCullough of La Junta, CO, bought the XYZ mutual fund, which has total assets of $240 million, liabilities of $10 million, and 15 million shares outstanding. a) What is the net asset value?
- Consider a mutual fund(ex. Contrafund) It has $10,000 in assets (stocks) and 250 shares are owned by people like you and I. Which one of the following is false?. The NAV = $40/share but will change if the market price of the stocks change If a new customer buys 1 share the NAV will change (up or down) If a new customer buys 1 share the PM will have more money to buy securities If an existing customer sells a share the NAV will not change When an existing customer sells their share(s), by law the Fund has to buy those shares(can you explain how did they solve this: (show full solution and formula) USE THE FOLLOWING INFORMATION FOR THE PROBLEM (1) You decide to sell short 200 shares of XCorp stock at a price of $75. Your margin deposit is 65 percent. Commission on the sale is 1.25%. While you are short, the stock pays a $1.75 per share dividend. Interest on margin debt is 5.25% per year. (1) Suppose at the end of one year XCorp is selling at $90 per share and you cover your short position at this price. What is your rate of return on the investment?(Assume a 1.25% commission on the purchase) -40.64% -25.53% 21% 7% –71.2% Ans: Rate of return = [75-90-0.9375-1.125-1.75- (1-.65)(75)(.0525)]/[(.65)(75)+0.9375] =-40.64% Option aThe Meadows Corporation needs to raise $52 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $45 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions, rounded to the nearest whole number, e.g., 1,234,567.) Number of shares offered
- The Meadows Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $30 per share and the company’s underwriters charge a spread of 8 percent, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions, rounded to the nearest whole number, e.g., 1,234,567.)Consider the following two investment situations:1. In 1980, when W.M. Company went public, 100 shares cost $1,650. Thatinvestment was worth $12,283,904 after 32 years (2012) with a rate of returnof around 32%. 2. In 1990, if you bought 100 shares of First Mutual Funds it would have cost$5,245. That investment would have been worth $289,556 after 22 years. Which of the following statements is correct?(a) If you had bought only 50 shares of the W.M. Company stock in 1980 and kept them for 32 years, your rate of return would be 0.5 times 32%.(b) If you had bought 100 shares of First Mutual Funds in 1990, you would have made a profit at an annual rate of 30% on the funds remaining invested.(c) If you had bought 100 shares of W.M. Company in 1980 but sold them after IO years (assume that the W.M. Company stock value increased at an annual rate of 32% for the first 10 years) and immediately put all the proceeds into First Mutual Funds, then after 22 years the total worth of your investment…The Whistling Straits Corporation needs to raise $60 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. If the offer price is $21 per share and the company's underwriters charge a spread of 7 percent, how many shares need to be sold? (Do not round intermediate calculations and round your answer to nearest whole number, e.g., 1,234,567.) Number of shares offered 3,133,641
- Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang’s current value of equity is $60 million. Zang currently has 4 million shares outstanding and will issue 1 million new shares. ESM charges a 7% spread. What is the correctly valued offer price, rounded to the nearest penny? How much cash will Zang raise net of the spread (use the rounded offer price)?The Elkmont Corporation needs to raise $67.9 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $23 per share and the company's underwriters charge a spread of 7.5 percent. How many shares need to be sold? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. Number of shares offered2) Zang Industries has hired the investment banking firm of Eric, Schwartz, & Mann (ESM) to help it go public. Zang and ESM agree that Zang's current value of equity is $56 million. Zang currently has 5 million shares outstanding and will issue 2 million new shares. ESM charges a 6% spread. What is the correctly valued offer price? Do not round intermediate calculations. Round your answer to the nearest cent. $ ___________ How much cash will Zang raise net of the spread (use the rounded offer price)? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. $___________