Small Biz 1: Sharon says she has a great idea for a small biz and wants you to invest. You're busy and have no time for any work but have 100k in capital. Sharon only has 20K but thinks combined, that's enough to start the biz. Sharon says, have the company pay me a 40k salary and then we'll split the profits based on the original equity investments. You believe if Sharon works VERY hard, the firm will generate 100k in revenue and have TOTAL expenses of 60k. But you also know Sharon runs a tutoring company and if she spends a lot of time doing that, she can make an additional 5k on the side but the firm will generate only 60k in revenue with the same expenses. What is your one year yield on this investment? (Define yield as Cash flow youre paid over what you invested and round to the nearest full percent).

Small Biz 2: Sharon says she has a great idea for a small biz and wants you to invest. You're busy and have no time for any work but have 100k in capital. Sharon only has 20K but thinks combined, that's enough to start the biz. Sharon says, have the company pay me a 40k salary and then we'll split the profits based on the original equity investments. You believe if Sharon works VERY hard, the firm will generate 100k in revenue and have TOTAL expenses of 60k. But you also know Sharon runs a tutoring company and if she spends a lot of time doing that, she can make an additional 8k on the side but the firm will generate only 60k in revenue with the same expenses. What is your one year yield on this investment? (Define yield as Cash flow youre paid over what you invested and round to the nearest full percent).

Small Biz 3: Sharon says she has a great idea for a small biz and wants you to invest. You're busy and have no time for any work but have 100k in capital. Sharon only has 20K but thinks combined, that's enough to start the biz. You say youre not interested in an equity contract but willing to pay Sharon 40k a year if the company generates profits in exchange for a debt contract that pays 20k a year as long as the company operates. You believe if Sharon works VERY hard, the firm will generate 100k in revenue and have TOTAL expenses of 60k. But you also know Sharon runs a tutoring company and if she spends a lot of time doing that, she can make an additional 8k on the side but the firm will generate only 60k in revenue with the same expenses. How much does Sharon earn in the first year? (Define yield as Cash flow youre paid over what you invested and round to the nearest full percent).

Small Biz 4: Sharon says she has a great idea for a small biz and wants you to invest. You're busy and have no time for any work but have 100k in capital. Sharon only has 20K but thinks combined, that's enough to start the biz. You say youre not interested in an equity contract but willing to pay Sharon 40k a year if the company generates profits in exchange for a debt contract that pays 20k a year as long as the company operates. You believe if Sharon works VERY hard, the firm will generate 100k in revenue and have TOTAL expenses of 60k. But you also know Sharon runs a tutoring company and if she spends a lot of time doing that, she can make an additional 8k on the side but the firm will generate only 60k in revenue with the same expenses. What is your one year yield on this investment? (Define yield as Cash flow youre paid over what you invested and round to the nearest full percent).

MF1: Assume an equity mutual fund owns $20,000,000 in stocks and $1,000,000 in cash, owes $2,000,000 in bank loans and 10,000,000 shares outstanding. What is the Mutual fund NAV? (Round to the nearest penny)

MF2: Assume in the morning an equity mutual fund owned $20,000,000 in stocks and $1,000,000 in cash, owed $2,000,000 in bank loans and 10,000,000 shares outstanding. The stock prices increased 20%, yielded 1% (on the original value) in dividends and the MF manager paid down half his debt. (Round to the nearest penny) What is the new MF NAV?

MF3. Assume in the morning an equity mutual fund owned $20,000,000 in stocks and $1,000,000 in cash, owed $2,000,000 in bank loans and 10,000,000 shares outstanding. The stock prices increased 20%, yielded 1% in dividends and the MF manager paid down half his debt. How much cash does the MF have?

MF4: Assume in the morning an equity mutual fund owned $20,000,000 in stocks and $1,000,000 in cash, owed $2,000,000 in bank loans and 10,000,000 shares outstanding. The stock prices increased 20%, yielded 1% in dividends and the MF manager paid down half his debt. Now that night, assume that because of the strong performance the fund receives $30,000,000 in flows. How many shares does the mutual fund have outstanding?

MF5. Assume in the morning an equity mutual fund owned $20,000,000 in stocks and $1,000,000 in cash, owed $2,000,000 in bank loans and 10,000,000 shares outstanding. The stock prices increased 20%, yielded 1% in dividends and the MF manager paid down half his debt. Now assume that because of the strong performance the fund receives $30,000,000 in flows. The MF manager then invests all of the new money in stocks. All the stocks in the portfolio lose 12%. How much value in dollars has the MF manager generated through this entire process?