Question
Use the following information for the next two questions: A mutual fund has 1,000 shares of Doggie Corp. currently trading at $10, and 500 shares
Use the following information for the next two questions:
A mutual fund has 1,000 shares of Doggie Corp. currently trading at $10, and 500 shares of Kitty, Inc., currently trading at $15. The fund has 2,000 shares outstanding. Investors expect the price of Doggie Corp. to increase to $14 and the price of Kitty Inc. to decline by the end of the year. Thus a new NAV.
What is the original NAV?
| $7.00 | ||
| $8.75 | ||
| $9.12 | ||
| $9.35 |
Assume that the price of Doggie Corp. shares is realized at $14. What is the maximum price to which Kitty Inc. can decline and still maintain the original NAV?
| $7.00 | ||
| $8.75 | ||
| $9.12 | ||
| $9.48 |
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Mergers Acquisition And Other Restructuring Activities
Authors: Donald M. Depamphilis
6th Edition
123854857, 978-0123854858
