What are the lifetime fees and investment capital for fund

Assignment Help Financial Management
Reference no: EM131954017

Suppose that a $1B VC fund has fees of 2.0 percent per year in all years, with these fees paid on committed capital in the first five years and on net invested capital for years 6 through 10. You can assume the fund is fully invested by the beginning of year 6, then realizes 20 percent of its investment capital in each of the following five years. What are the lifetime fees and investment capital for this fund? (Make assumptions for any information that you think is still missing from the problem.)

Reference no: EM131954017

Questions Cloud

What is the value of inheritance today : What is the value of this inheritance today if the applicable discount rate is 6.35 percent?
Compute the cost of this new common equity : Making use of the constant growth model, compute the cost of this new common equity.
Explain how to estimate the cost of capital : Explain how to estimate the cost of capital. Should we use book or market value to determine the weights?
Analyze the role of public policy with regard to project : Analyze the role of public policy with regard to your project. What policies and processes should be in place to create an effective program?
What are the lifetime fees and investment capital for fund : What are the lifetime fees and investment capital for this fund?
Calculate present value of the annuity : Using a discount rate of 4%, calculate the present value of the annuity. How much does the Bluebird Company need to deposit today?
What groups have a stake in ventrias actions : What groups have a stake in Ventria's actions? Identify the relevant stakeholders and for each, state its interests and sources of power.
Economic realities of healthcare delivery : Why do traditional economic theories of supply and demand don't adequately address the economic realities of healthcare delivery in the United States?
Explain how the technological environment impacts : Explain how the technological environment impacts your chosen company and its customers. ·

Reviews

Write a Review

Financial Management Questions & Answers

  Depreciated straight-line to zero over four-year tax life

The Market Place is considering a new four-year expansion project that requires an initial fixed asset investment of $2.8 million. The fixed asset will be depreciated straight-line to zero over its four-year tax life, after which time it will have a ..

  What is the maximum price alaska should be willing to pay

Pricing a Foreign Target. Alaska Inc. would like to acquire Estoya Corp., which is located in Peru. In initial negotiations, Estoya has asked for a purchase price of 1 billion Peruvian new sol. If Alaska completes the purchase, it would keep Estoya’s..

  Investor earn by benefiting from the above rates

What nominal (riskless) rate of return for $ investments can an US investor earn by benefiting from the above rates?

  What is alfa cost of equity for the new issue

Floatation costs will be 4 percent of market price. What is Alfa's cost of equity for the new issue?

  Trend that influences newspapers today

Which of the following is a trend that influences newspapers today?

  Calculate the npv and irr for the project on after-tax basis

Calculate the NPV and IRR for the project on after-tax basis. How are property managers potentially able to enhance value?

  Calculate simple three-month moving average for each month

Calculate the simple three-month moving average for each month for both companies.

  Relative valuation of common stock

(Relative valuation of common stock) Using the P/E ratio approach to valuation, calculate the value of a share of stock under the following conditions: Now show that you get the same answer using the discounted dividend model. The stock price using t..

  What is their current financial status

Research the city of Scranton, Pennsylvania. What lead to their serious financial difficulties that may likely lead to backruptcy?

  The financial statements along with budget information

The financial statements along with budget information help managers to run departments effectively and efficiently.

  Interested in building new residential subdivision

Suppose a developer is interested in building a new residential subdivision.

  What inflation premium is built into five-year bond yields

Sonny Corporation's 5-year bonds yield 6.65%, and 5-year T-bonds yield 4.75%. What inflation premium (IP) is built into 5-year bond yields?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd