Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Open end Fund A has 187 shares of ATT valued at $46 each and 41 shares of Toro valued at $86 each. Closed-end Fund B

image text in transcribed
Open end Fund A has 187 shares of ATT valued at $46 each and 41 shares of Toro valued at $86 each. Closed-end Fund B has 86 shares of ATT and 83 shares of Toro. Both funds have 1,000 shares outstanding. a. What is the NAV of each fund using these prices? (Round your answers to 3 decimal places. (0.9., 32.461)) b. If the price of ATT stock increases to $47.25 and the price of Toro stock declines to $83.292, how does that impact the NAV of both fonds? {Negative amounts should be indicated by a minus sign. Do not round Intermediate calculations, Round your to 2 decimal places. (e.g., 32.16)) c. Assume that another 166 shares of ATT valued at $46 are added to Fund A. The funds needed to buy the new shares are obtained by selling 630 more shares in Fund A. What is the effect on Fund A's NAV If the prices remain unchanged from the original prices? NAV of Fund A NAV of Fund B b. Percentage change in NAV Fund A Percentage change in NAV Fund B Percentage change in NAV Fund A %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

978-0077398194

Students also viewed these Finance questions

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago