What was the net asset value of fund at beginning of year

Assignment Help Financial Management

Reference no: EM131847964

At the beginning of the year, the composition of the Blackrock mutual fund was as follows:

Stocks Number of Shares Price per share

Invested in

X 20 million $12

Y 30 million $31

Z 25 million $22

W 15 million $20

The fund has issued 100 million of its own shares to investors. The fund’s liabilities are the management fees paid to the portfolio manager ($1 million) and research costs ($10 million). What was the net asset value of the fund at the beginning of the year?

Today, the market prices of stocks X, Y, Z and W, are $15, $25, $25 and $18 respectively (Assume the number of shares of each stock owned by Blackrock remains unchanged, and that the fund liabilities remain unchanged as well). In addition, the fund just made a dividend distribution of $1 per share to investors. What is the new net asset value of the fund today? What is the rate of return of the fund between the beginning of the year and today?

Reference no: EM131847964

Questions Cloud

What is the roe and total asset turnover ratio : Parker’s nightclub has a debt-equity ratio of 0.75, an ROA of 10.5%, and a profit margin of 5.4%. What is the ROE and total asset turnover ratio?

Financial markets are generally recognized : Financial markets are generally recognized as being semi-strong form efficient, which means:

Offered to buy financial security : Bob is offered to buy a financial security that guarantees to pay him $50 every 2 years forever. The annual interest rate is 8%.

What statistical test can be used to convince your employer : What statistical test can be used to convince your employer that reducing turn over rate for the company is necessary?

What was the net asset value of fund at beginning of year : The fund has issued 100 million of its own shares to investors. What was the net asset value of the fund at the beginning of the year?

Cookie-baking ovens-what is each machine eac : You are evaluating two different cookie-baking ovens. If your discount rate is 11 percent, what is each machine's EAC

Ceases to withdraw funds from the account : She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account.

Describe all transactions the treasurer needs to take : How should the extra cash reserve be invested? Explain. Describe all transactions the treasurer needs to take.

Calculate the time needed to pay off the loan : Calculate the time needed to pay off the loan, the total amount, or the new quarterly payments.

User Account

All Pages