1. There is a mutual fund that you are interested in, however, the fund owes $23 million dollars to Goldman Sachs for brokerage consulting fees and it owes $77 million in lease obligations, debt obligations, and investment advisory fees. The mutual fund is worth $600 million and has 35 million shares outstanding, what is your anticipated price per share or NAV?
2. The mutual fund paid $10million to Goldman Sachs during the month and reduced its other obligations by $27million. The mutual fund is now at $695 and has 50 million shares outstanding, what is your anticipated price per share or NAV?
3. Use the initial NAV, the end of month NAV, with income distributions of $3.05 and capital gains distributions of $.80 to calculate Rate of Return. What is the month’s Rate of Return and does it make sense to invest in the mutual fund given what the trend indicates?