How are exchange-traded funds-unit investment trusts

Assignment Help Financial Management
Reference no: EM131009901

How are exchange-traded funds (ETFs) and unit investment trusts (UITs) different from index mutual funds, and from each other? Please list your points

Reference no: EM131009901

Questions Cloud

The growth rate in dividend is expected : A common stock has just paid a dividend of $1.64/share. The dividend is expected to grow by 16% for the coming 25 years. After that, the growth rate in dividend is expected to be 5% per year in perpituity. The RRR on the stock is 10%. What is the val..
Compute the prospective rate of return : A project has a first cost of $120,000 and an estimated salvage value after 25 years of $20,000. Estimated average annual receipts are $25,900; estimated average annual disbursement are $15,060. Assuming that annual receipts and disbursements will be..
What is the present worth equivalent cost to the contractor : A grader costs $350,000 to purchase and is expected to have a useful life of 8 years. Annual operating and maintenance costs are estimated to be $35,000 per year, and the salvage value after 8 years of use is estimated to be $50,000. At an interest r..
The risky portfolio and the risk-free asset : A portfolio has an expected rate of return of 14% and a standard deviation of 22%. The risk-free rate is 4%. An investor has the following utility function:. U = E(r)-1/2(A)σ2 Which value of A makes this investor indifferent between the risky portfol..
How are exchange-traded funds-unit investment trusts : How are exchange-traded funds (ETFs) and unit investment trusts (UITs) different from index mutual funds, and from each other? Please list your points.
Republican party economic platform during the civil war era : What were the key elements of the Republican Party economic platform during the Civil War era? Give examples of legislation passed by Republicans during the Civil War and Reconstruction that had economic implications. Why were they important?
What is the holding period return for your portfolio : Last year you purchased 650 shares of stock for $20.5 per share and 4 coupon bonds with 6% coupon rate for $1,000 each. Over the course of the year, you received dividends totaling $1.2 per share. Today stock is selling at $21.5 per share and bond is..
What is the estimated value per share of your firms stock : Ume that the average firm in your company’s industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry and just paid a dividend (D0) of $1. What is requi..
What is the present value of an income stream : At a constant interest rate of 15%, compounded annually, what is the present value of an income stream paying $50 next quarter and growing at 2% per quarter until the end of the third year? From that point on it grows at 1% per quarter indefinitely.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the internal rate of return

What is the internal rate of return for the following project: an initial outlay of $10,500 resulting in a single cash inflow of $20,462 in 7 years?

  What will be companys stock price following stock split

Company Z's stock trades at $45 a share. The company is contemplating a 3-for-2 stock split. Currently, the company has EPS of $3.00, DPS of $0.50, and 20 million shares of stock outstanding. Assuming that the stock split will have no effect on the t..

  A stock has an expected return

A stock has an expected return of 13.2 percent, the risk-free rate is 8.5 percent, and the market risk premium is 10 percent. What must the beta of this stock be?

  Calculating portfolio betas

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.29 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

  What is the percent return on equity

In the year 2007, the average firm in the S&P 500 Index had a total market value of fives times stockholders’ equity (book value). Assume a firm had total assets of $10 million, total debt of $6 million, and net income of $600,000. What is the percen..

  What would be the player annual salary

Instead of accepting the contract, the player asks his agent to negotiate a contract which has a present value of $1 million MORE than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year annuity (pa..

  Fixed retirement income that has same purchasing power

Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires, until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $55,000 has today. You borrow $..

  What are the net operating cash flows

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  How much total direct labor cost is incurred in june

Prepare the journal entry to reflect the initial $86,000 investment and evaluate the three proposals for expansion, providing the pros and cons of each option.

  What is the amount of the firms current assets

Killer Whale, Inc. has the following balance sheet statement items: total current liabilities of $693186; net fixed and other assets of $1832451; total assets of $3472745; and long-term debt of $806548. What is the amount of the firm's current assets..

  Considering replacing these evaporators with new machine

Klondike Pharmaceuticals has several herb extractor evaporators that were purchased four years ago at a price of $20,000 (you can ignore inflation). These machines currently require annual maintenance costs of $2,000. Assume both all of this equipmen..

  What is target capital structure-residual dividend policy

Global Inc. has its own target capital structure that consists of debt and equity. The firm anticipates that its capital budget for the next year will be $1,500,000. If it reports net income of $1,200,000 and wants to maintain a 20% payout ratio, wha..

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!

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