A mutual fund has $3 million in cash and $7 million invested in securities. It currently has 2 million shares outstandin
Posted: Sun Jul 03, 2022 12:54 pm
A mutual fund has $3 million in cash and $7 million invested insecurities. It currently has 2 million shares outstanding.
a.
What is the NAV of this fund? (Round your answer to 2 decimalplaces. (e.g., 32.16))
NAV $ per share
b.
Assume that some of the shareholders decide to cash in theirshares of the fund. How many shares, at its current NAV, can thefund take back without resorting to a sale of assets?
Number of shares
c-1.
As a result of anticipated heavy withdrawals, it sells 26,000shares of IBM stock currently valued at $37. Unfortunately, itreceives only $35 per share. What is the net asset value after thesale? (Round your answer to 2 decimal places. (e.g., 32.16))
Net asset value $
c-2.
What are the fund’s cash assets after the sale? (Enter youranswers in millions rounded to 2 decimal places. (e.g., 32.16))
Cash $ millionSecurities $ million
d-1.
Assume after the sale of IBM shares, 350,000 shares are soldback to the fund. What is the current NAV? (Do not roundintermediate calculations. Round your answer to 2 decimal places.(e.g., 32.16))
Current NAV $
d-2.
Is there a need to sell more stocks to meet this redemption?
a.
What is the NAV of this fund? (Round your answer to 2 decimalplaces. (e.g., 32.16))
NAV $ per share
b.
Assume that some of the shareholders decide to cash in theirshares of the fund. How many shares, at its current NAV, can thefund take back without resorting to a sale of assets?
Number of shares
c-1.
As a result of anticipated heavy withdrawals, it sells 26,000shares of IBM stock currently valued at $37. Unfortunately, itreceives only $35 per share. What is the net asset value after thesale? (Round your answer to 2 decimal places. (e.g., 32.16))
Net asset value $
c-2.
What are the fund’s cash assets after the sale? (Enter youranswers in millions rounded to 2 decimal places. (e.g., 32.16))
Cash $ millionSecurities $ million
d-1.
Assume after the sale of IBM shares, 350,000 shares are soldback to the fund. What is the current NAV? (Do not roundintermediate calculations. Round your answer to 2 decimal places.(e.g., 32.16))
Current NAV $
d-2.
Is there a need to sell more stocks to meet this redemption?