What was the portfolio turnover rate

Reference no: EM131928084

Question: A mutual fund portfolio currently is worth $ 800 million. During the year, the fund sells stocks worth of 200 million and realizes the long term capital gains of $50 million. The fund uses all of the proceeds to buy common stocks of different companies. The fund has current liabilities of $2 million and 20 million shares outstanding. You own 1,500 shares of the mutual fund. (20 points)

a. What was the portfolio turnover rate?

b. What is the net asset value of the fund?

c. What is your portfolio worth?

d. If your tax rate on long term capital gains income is 15%, how much extra you will owe on this year's taxes as a result of these transactions? e. If in December the NAV of the fund depreciates 10 percent, what is your end of year portfolio worth? Do you still need to pay taxes calculated in part (d)? If yes, what can you do to legally avoid paying these taxes?

Reference no: EM131928084

Questions Cloud

How much do you have to save per year : How much do you have to save per year during your working years in order to achieve your retirement goal? $ (Round to the nearest cent.)

Calculate his gross pay : During the week ending October 22, 20XX, he worked 40 hours and received $170 in tips. Calculate his gross pay

What is the balance of accounts receivables for the company : What is the balance of accounts receivables for the company? Calculate the cash ratio. How does this ratio compare with the industry?

Standard deviation of a sampling distribution of sample : A population has a mean µ=76 and standard deviation s=27. Find the mean and standard deviation of a sampling distribution of sample means with sample size n=81.

What was the portfolio turnover rate : A mutual fund portfolio currently is worth $ 800 million. During the year, the fund sells stocks worth of 200 million and realizes the long term capital gains.

Determine the cost per cd for each group : Sheridan, Inc. buys 1,200 computer game CDs from a distributor who is discontinuing those games. Determine the cost per CD for each group

Difference in the average time spent by the two services : The standard deviation of the advising department and the thesis instructor is 5.6 minutes and 4.3 minutes respectively.

Taxes per year by purchasing piece of equipment : You will save $110,000 before taxes per year by purchasing the piece of equipment and you will be able to reduce working capital by $50,000.

How much must sara save each year : Sara, who has just turned 36, would like to have an annual annuity of $21,500 paid over a 20 year period, the first payment occurring on his 66th birthday.

User Account

All Pages