a. Suppose that an ETF trades at a price below its net asset value. Describe what authorized participants (APs) could do to take advantage of this discrepancy. What would be the likely effect of the APs’ actions?
If the ETF is trading below NAV, APs can take advantage by buying shares in the ETF and shorting an equivalent amount in the underlying index. This will result in a profit when the ETF price converges with the NAV.
The effect of the AP's action is that the ETF price will rise due to buying by the AP. The ETF price will rise until it equals the NAV.
a. Suppose that an ETF trades at a price below its net asset value. Describe what...
Suppose you sell a fixed asset for $117,000 when its book value
is $137,000. If your company’s marginal tax rate is 21 percent,
what will be the effect on cash flows of this sale (i.e., what will
be the after-tax cash flow of this sale)? (Enter your
answer as a whole number.)
Suppose you sell a fixed asset for $117,000 when its book value is $137.000. If your company's marginal tax rate is 21 percent, what will be the effect...
Suppose you sell a fixed asset for $127,000 when its book value is $147,000. If your companys marginal tax rate is 21 percent what will be the effect on cash flows of this sale?
Suppose you sell a fixed asset for $128,000 when its book value is $148,000. If your company’s marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? ATCF
Suppose that at the start of the year, no-load mutual fund has a net asset value of $27.80 per share. During the year, it pays its shareholders a capital gain and dividend distribution of $1.16 per share and finishes the year with an NAV of $30.18. a. What is the return to an investor who holds 258.156 shares of this fund his (nontaxable) retirement account? Do not round intermediate calculations. Round your answer to two decimal places. b. What is...
Suppose you sell a fixed asset for $121,000 when its book value is $141,000. If your company’s marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)? (Enter your answer as a whole number.) ATCF:______
Suppose you sell a fixed asset for $128,000 when its book value is $148,000. If your company's marginal tax rate is 35 percent, what will be the effect on cash flows of this sale (ie., what will be the after-tax cash flow of this sale)? (Enter your answer as a whole number.) ATCF 83,200
7.What is an ETF? How do ETFs differ from open-end stock funds? A. ETFs are similar to open-end mutual funds except they can be traded like stocks throughout the day. ETFs are designed to mimic particular stock indexes or sectors and are not actively managed. Closed-end stock funds only trade after the markets close and are traded at net asset value. B. ETFs are similar to closed-end mutual funds except they can be traded like stocks throughout the day. ETFs...
Suppose you sell a fixed asset for $92,748 when its book value is $39,249. If your company's marginal tax rate is 25 percent, what will be the after-tax cash flow of this sale? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR (example: 18630).
Suppose you sell a fixed asset for $92,748 when its book value is $39,249. If your company's marginal tax rate is 25 percent, what will be the after-tax cash flow of this sale? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR (example: 18630).
Suppose you sell a fixed asset for $77,862 when its book value is $51,589. If your company's marginal tax rate is 25 percent, what will be the after-tax cash flow of this sale? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR (example: 18630)