A Mutual Fund Had Year-End Assets of $437,000,000 and Liabilities

question 68

Multiple Choice

A mutual fund had year-end assets of $437,000,000 and liabilities of $37,000,000. If the fund NAV was $60.12, how many shares must have been held in the fund?

• A) 6,653,360
• B) 8,412,642
• C) 10,165,476
• D) 9,165,414
• E) 9,219,160

Calculate the present value of future dividends to determine the value of stock.

Understand the growth rate of dividends and how it impacts stock values.

Apply the required rate of return to evaluate investment opportunities.

Understand the concept of the constant growth model in dividend paying stocks.