City Street Fund has a portfolio of $432 million and liabilities of $12 million. a. If...

Question

Question

City Street Fund has a portfolio of $432 million and liabilities of $12 million. a. If there are 28 million shares outstandin

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

a.
Calculation of net asset value
Net asset value	(Portfolio value - Liabilities)/No of shares outstanding
Net asset value	(432-12)/28
Net asset value	$15

b-1
If shares are redeemed portfolio value would decrease
Portfolio value	432-(2*15)
Portfolio value	$402	million

Portfolio value decreases to $402 million

b-2
If shares are redeemed, shares outstanding would decrease
Shares outstanding	28-2
Shares outstanding	26

Shares outstanding decreases to 26 million.

b-3.
Calculation of net asset value
Net asset value	(Portfolio value - Liabilities)/No of shares outstanding
Net asset value	(402-12)/26
Net asset value	$15

Add a comment

Answer 2

Similar Homework Help Questions

City Street Fund has a portfolio of $432 million and liabilities of $12 million. a. If...

City Street Fund has a portfolio of $432 million and liabilities of $12 million. a. If there are 28 million shares outstanding, what is net asset value? Net asset value $ b-1. If a large investor redeems 2 million shares, what happens to the portfolio value? (Enter your answer in millions.) Portfolio value (Click to select)increasesdecreases to $ million. b-2. If a large investor redeems 2 million shares, what happens to shares outstanding? (Enter your answer in millions.) Shares outstanding (Click...
City Street Fund has a portfolio of $450 million and liabilities of $10 million. a. If...

City Street Fund has a portfolio of $450 million and liabilities of $10 million. a. If there are 55 million shares outstanding, what is net asset value? Net asset value $ 8 b-1. If a large investor redeems 4 million shares, what happens to the portfolio value? (Enter your answer in millions.) Portfolio value decreases to $ million. b-2. If a large investor redeems 4 million shares, what happens to shares outstanding? (Enter your answer in millions. Shares outstanding decreases...
Seved Help Save & Exit City Street Fund has a portfolio of $440 million and liabilities...

Seved Help Save & Exit City Street Fund has a portfolio of $440 million and liabilities of $20 million a. If there are 60 million shares outstanding, what is the net asset value? Net asset value $ 7 b-1. If a large investor redeems 1 million shares, what happens to the portfolio value? (Enter your answer in millions.) Portfolio value decreases to $ 433 million b-2. If a large investor redeems 1 million shares, what happens to shares outstanding? (Enter...

Consider a mutual fund with $214 million in assets at the start of the year and...

Consider a mutual fund with $214 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2 million. The stocks included in the fund's portfolio increase in price by 8%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00 % , which are deducted from portfolio...
Consider a mutual fund with $203 million in assets at the start of the year and...

Consider a mutual fund with $203 million in assets at the start of the year and with 10 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $5 million. The stocks included in the fund's portfolio increase in price by 7%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 0.75%, which are deducted from portfolio assets at...
Consider a mutual fund with $213 million in assets at the start of the year and...

Consider a mutual fund with $213 million in assets at the start of the year and with 12 million shares outstanding. The fund invests in a portfolio of stocks that provides dividend income at the end of the year of $3 million. The stocks included in the fund's portfolio increase in price by 6%, but no securities are sold, and there are no capital gains distributions. The fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at...

The Closed Fund is a closed-end investment company with a portfolio currently worth $180 million. It...

The Closed Fund is a closed-end investment company with a portfolio currently worth $180 million. It has liabilities of $6 million and 12 million shares outstanding. a. What is the NAV of the fund? b. If the fund sells for $15 per share, what is its premium or discount as a percent of net asset value? (Input the amount as a positive value. Round your answer to 2 decimal places.)
The Closed Fund is a closed-end investment company with a portfolio currently worth $235 million. It...

The Closed Fund is a closed-end investment company with a portfolio currently worth $235 million. It has liabilities of $2 million and 5 million shares outstanding. a. What is the NAV of the fund? (Round your answer to 2 decimal places.) NAV $C b. If the fund sells for $43 per share, what is its premium or discount as a percent of NAV? (Input the amount as a positive value. Round your answer to 2 decimal places.) The fund sells...
The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 270,000 $...

The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 270,000 $ 30 B 370,000 35 C 470,000 10 D 670,000 15 The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $50,000. There are 5 million shares outstanding. What is the net asset value of the fund? (Round your answer to 2 decimal places.) Net asset value $

4. James Fund has assets of $192 million, liabilities of $4 million and 15 million outstanding...

4. James Fund has assets of $192 million, liabilities of $4 million and 15 million outstanding shares. James Fund is an open-ended fund. a. Calculate the net asset value of the fund. b. Assume investors invest an additional 2.51 million in the fund. i. Calculate the additional shares to be issues. ii. Calculate the total shares outstanding. iii. Calculate the net asset value. C. Assume that over the past year James Fund has bought $215 million of assets and sold...

City Street Fund has a portfolio of $432 million and liabilities of $12 million. a. If...

Homework Answers