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1 The Atlas Mutual Fund owns the following stocks: Stocks Price per Number of Shares 50 423500 36 307500 10000 The fund has $50,000 liabilities

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1 The Atlas Mutual Fund owns the following stocks: Stocks Price per Number of Shares 50 423500 36 307500 10000 The fund has $50,000 liabilities and has 60,000 shares outstanding. What is the NAV of this fund? 2. XY Company has a required return of 10 percent. It's last year's dividend was $1.00 per share and future dividends will increase by 10 percent for the following 5 years. After that, the annual dividend growth rate will be 5 percent indefinitely. What is the value of the stock 3. A fast crowing firm recently paid a dividend of $2.00 per share The dividend is expected to increase at a 25 percent rate for the next 6 years. Afterwards, the dividend will grow at a more stable and constant rate of 12 percent per year. If a 15 percent discount rate is appropriate for this stock, what is its value today? 4. You have constructed an index using the following four stocks at the beginning of the year. Given the following information concerning three stocks, a value-weighted average Stock Price Shares Outstanding A S10 1,000,000 $14 3,000,000 $21 10,000,000 D $23 5,000,000 What is the percentage change in the index value under value-weighted average if each price changes to $12, $16, $26 and $20, respectively at the end of the year? Dli

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