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Word limit: 100 words for each question!
- Describe broadly how firms raise fund through financial market?
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- Consider a mutual fund that manages a portfolio of securities worth $120 million.Suppose the fund owes $4 million to its investment advisers and owes another $1million for rent, wages due, and miscellaneous expenses.The fund has 5 million shareholders.What is the Net Asset Value?If a sophisticated investor consistently rebalances their portfolio every year among 14 different open-ended sector funds within four assets classes, which provider would be the most value-added? A : Local commercial bank B : Boutique money manager C : A large family of funds D : Financial supermarketFor the same two funds discussed in Q2 the ending wealth after five years was $1.2438 per dollar invested at the beginning for the Equity Income Fund, and $1.0492 per dollar invested at the beginning for Personal Strategy Fund. What were the annual average total returns for each fund for this five-year period?
- Answer question between 70 to 100 words in your own language 1- Why are investors and managers concerned about efficiency of the capital market?what is the maximum rate at which the firm can grow, using only internally generated fund? the firm pays out 35% of its net income in dividends and reinvests 65% in the firm. ROA is 12.5% and ROE is 15.8%. 11.45% 4.76% 8.84% 4.58% 8.60%You are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current liabilities : OMR 800,000 Then return on capital employed is
- The New Fund had average daily assets of $3.2 billion in the past year. The fund sold $500 million and purchased $500 million worth of stock during the year. a. What was its turnover ratio? b. If the fund had an expense ratio of 1.1%, what were the total fees paid to the fund's investment managers?You are given the following information concerning a firm:Assets required for operation: $5,100,000Revenues: $8,400,000Operating expenses: $7,850,000Income tax rate: 40%. Management faces three possible combinations of financing: 100% equity financing 30% debt financing with a 8% interest rate 60% debt financing with a 8% interest rate What is the net income for each combination of debt and equity financing? Round your answers to the nearest dollar. 1 2 3 Net income $ $ $ What is the return on equity for each combination of debt and equity financing? Round your answers to one decimal place. 1 2 3 Return on equity % % % If the interest rate had been 16 percent instead of 8 percent, what would be the return on equity for each combination of debt and equity financing? Round your answers to one decimal place. 1 2 3 Return on equity % % % What is the implication of the use of financial leverage…The financial manager has determined the following schedules for the cost of funds: Cost of the Ratio Cost of Debt Equity 0% 5% 13% 10 5 13 20 5 13 30 5 13 40 5 14 50 6 15 60 8 16 a. Determine the firm’s optimal capital structure. b. Construct a simple pro forma balance sheet that shows the firm’s opti- mal combination of debt and equity for its current level of…
- 20)Corporate fund started the year with a net asset value of GHS12.25. By year-end, its NAV equaled GHS12.10. The fund paid year-end distributions of income and capital gains of GHS1.50. What was the (pretax) rate of return to an investor in the fund?Your essay/answer should be 1000 words maximum: "Many views have been expressed as to whether a firm can increase its value by adjusting its financing mix in terms of equity or debt. You are required to express a view on this topic that is based on the underlying financial theories, and which makes use of the academic literature. You should also make extensive use of up-to-date case study or real-world examples to support your view."Yamaha Growth Fund has an expense ratio of 1.83%. If you invest $55,000 in this fund, what is the dollar amount of fees that you would pay this year, and is this a low, average or high expense ratio?
