User Account

All Pages

What will be the total shares outstanding now

Assignment Help Financial Management
Reference no: EM131015972

The FIRE 317 Fund has $240 million in assets, $100,000 in liabilities, and it sells at a 7 percent discount to NAV. If the quoted share price for this closed-end fund is $14.8738, how many shares are outstanding? If you purchase 1,000 shares of this fund, then what will be the total shares outstanding now? [Hint: First compute the NAV from the closed-end fund discount. Round off the NAV at six digits.]

Reference no: EM131015972

Questions Cloud

What is the internal growth rate : Last year, Lakesha’s Lounge Furniture Corporation had an ROA of 7.4 percent and a dividend payout ratio of 26 percent. What is the internal growth rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Calculate the change in return for each security : Assumed the betas for securities A,B, and C are shown here. Security Beta A 1.4 B .80 C -.90. Calculate the change in return for each security if the market experiences an increase in its rate of return of 13.2% over the next period. Calculate the ch..
What is the firms return on assets : A firm has a profit margin of 11.1% on sales of 95,213,909. If the firm has debt of $7,500,000, total assets of 431,244,088, and an after tax interest cost on total debt of 5%, what is the firm's Return on Assets (ROA)?
How much in dividends were paid to shareholders : In its most recent financial statements, Nessler Inc. reported $89,086,003 of net income and $817,799,773 of retained earnings. The previous year retained earnings were $763,748,438. How much in dividends were paid to shareholders during the year? As..
What will be the total shares outstanding now : The FIRE 317 Fund has $240 million in assets, $100,000 in liabilities, and it sells at a 7 percent discount to NAV. If the quoted share price for this closed-end fund is $14.8738, how many shares are outstanding? If you purchase 1,000 shares of this ..
What is free cash flow for the year : Arlington Corporation had EBIT this year of $48,452. The firm's depreciation expense was $8,543, and its tax rate was 38%. Arlington had a net fixed asset balance of $67,399 last year, and $56,265 this year. The company had current assets and operati..
What is the familys disposable income : Construct a personal income statement for the Humperdinck family using the following information: salaries, $42,000; mortgage payment, $7,980; food, $2,400; interest income, $150; transportation, $1,200; dividend income, $190; automobile payment, $3,..
Treasury note has a face value : A 3-year treasury note has a face value of $1000 and annual coupon of 8%. The 1-year spot rate is r1 = 2%, and the 1-year forward rates for the next two years are r2 = 4% and r3 = 5%. Compute the price of the T-note. Calculate the 2- and 3-year spot ..
Raise ethical standards in our organizations : Operating a business in an ethical manner takes time, effort and commitment. What are the key elements to a company having successful organizational ethics? What can we do as managers to encourage ethical behavior and to raise ethical standards in ou..

Reviews

Write a Review

Financial Management Questions & Answers

  The cost of equity for an all equity firm

The Aggie Company has EBIT of $50,000 and market value debt of $100,000 outstanding with a 9% coupon rate. The cost of equity for an all equity firm would be 14%. Aggie has a 35% corporate tax rate. Investors face a 20% tax rate on debt receipts and ..

  Issue of preferred stock outstanding

Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?

  What are total stockholders equity

Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $250,000, fixed assets of $800,000, current liabilities of $195,000, and long-term debt of $300,000. What is Jack and Jill's total stockholders' equity?

  What is the optimal order quantity for these boats

Your firm has sales of $10,000,000, net income of $800,000, total assets of $10,000,000, and equity of $4,000,000. Your firm projects an increase in sales of 15 percent and has a dividend payout ratio of 40 percent? What is the sustainable growth rat..

  Contemplating making a contribution to her traditional IRA

Sarah was contemplating making a contribution to her traditional IRA in 2014. She determined she would contribute $5,000 in December 2014, but forgot about making the contribution until she was preparing her 2014 tax return in February 2015. Use the ..

  About the savings cash flow

You just graduated and you plan to work for 10 years and then leave for the Australian outback bush country. You figure you can save $1500 a year for the first 5 years and $2000 a year for the next 5 years. These savings cash flow will start one year..

  What personal tax rate would make investors equally willing

After completing its capital spending for the year, Carlson Manufacturing has $2,600 extra cash. Carlson’s managers must choose between investing the cash in Treasury bonds that yield 7 percent or paying the cash out to investors who would invest in ..

  Assuming positive interest rates-holding other constant

Which of the following statements is CORRECT, assuming positive interest rates and holding other things constant?

  What will firms cost of equity be if the firm makes switch

An all equity firm has a cost of capital of 15 percent. The firm is considering switching to a debt-equity ratio of .65 with a pretax cost of debt of 7.5 percent. What will the firm's cost of equity be if the firm makes the switch? Ignore taxes.

  Before-tax cost of debt capital-average risk projects

The Classic Car co. has a before-tax cost of debt capital of 9%, a cost of preferred stock of 10%, a cost of equity capital of 14%, and a marginal tax rate of 40%. The market values of its debt, preferred stock and common stock are $40 million, $20 m..

  Selling price to outside customers

Division X makes a part that it sells to customers outside of the company. Division Y of the same company would like to use the part manufactured by Division X in one of its products. Division Y currently purchases a similar part made by an outside c..

  Debt-preference shares and ordinary shares

Quest Exploration Ltd is trying to take advantage of the commodity boom by increasing its exploration activities. However, as a junior mining company it will need to raise additional capital over the coming year. Debt: Preference shares: Ordinary sha..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd