Duties by asset managers of hedge funds and mutual funds

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1. What could be some of the major violations of fideciary duties by asset managers of hedge funds and mutual funds?

2. A 10-year annuity-immediate pays 100 quarterly for the first year. In each subsequent year, each payments is increased by 5% over the payment for the previous year. There is a nominal annual interest of 8% convertible quarterly. Find the present value of this annuity

3. A firm’s cost of equity is estimated to be 9.5%. The firm’s cost of debt and marginal tax rate are 6% and 40%, respectively. The market value of the firm’s common equity and debt are $870 million and $250 million, respectively. What is the firm’s weighted average cost of capital?

Reference no: EM131955341

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