assetvaluationalternativeinvestments(编辑修改稿)

assetvaluationalternativeinvestments(编辑修改稿)内容摘要：

by supply and demand. The share price of a closedend fund is not directly linked to the fund’s asset value (NAV). Openend investment panies are funds that continue to sell and repurchase shares after their initial public offerings. They will buy or sell these shares at the per share NAV. There may be a sales or redemption fee charged for the transaction. A no load fund charges no fee to purchase the fund’s shares. To buy a share the investor pays the NAV of the share. A load fund charges a sales fee to the investor based on the NAV of the share. If an investor wanted to buy a share of an 8% load fund that had a NAV of $10, the investor would pay ($10/(1 .08)) $ to buy a share. c: Explain how a fund39。 s asset value is calculated. The NAV is the prevailing market value of all the shares and assets owned by the fund less the fund’s liabilities and then dividing by the number of mutual fund shares outstanding. d: Distinguish between a closedend fund39。 s asset value and the fund39。 s market price. Closedend investment panies are initiated through a stock offering to raise funds. The IC does not issue or redeem shares after the initial offering. Shares of a closedend IC are traded in the public markets and are priced by supply and demand. The share price of a closedend fund is not directly linked to the fund’s asset value (NAV). The NAV is the prevailing market value of all the shares and assets owned by the fund less the fund’s liabilities and then dividing by the number of mutual fund shares outstanding. Many closedend funds sell at a discount of 5 to 20 percent from their NAV. e: Distinguish between a load fund39。 s asset value and offering price. A load fund’s offering price is the sum of the NAV of the share and a sales charge. The latter can be as high as 8 percent for some funds. However, such funds generally do not charge any redemption fee. SEC Rule 12b1 permits funds to deduct as much as percent of average assets per year to cover distribution costs. These costs are advertising, missions paid to brokers, and general marketing expenses. To determine if a fund is taking 12b1 deductions you should read the fund’s prospectus. f: Describe the types of fees charged by a mutual fund and how fees affect fund performance. In addition to load and 12b1 fees, investment firms charge annual management fees. Fees typically range from .25 to 1% of the average assets under management. Management fees are a major driving force in the creation of new funds. The fixed costs of running a fund, ., research, clerical, and management, do not rise in line with the assets under management since there are economies of scale in fund management. 3: Venture Catalysts or Vulture Capitalists a: Distinguish among the three early stages of venture capital financing.  Seed financing is the capital that is provided to develop the initial idea and perform market research.  Startup financing is employed in product development and initial marketing efforts. In this stage, the firm is typically less than one year old and has not sold its product to the general public.  Firststage financing is used to begin mercial production and to initiate product sales. b: Distinguish among the three states of expansion financing for venture capital investments.  Secondstage financing is capital that is used to expand a firm that has an established mercial product line.  Thirdstage financing is capital that is used for a major expansion of the firm’s plant and equipment or product development.  Mezzanine financing is capital that is provided to a firm that expects to go public within a short period of time. c: Distinguish between turnaround venture financing and leveraged buyout/management buyout venture financing. There are two special cases of venture capital financing. 1. Turnaround financing is typically provided to an existing firm that needs a capital infusion to develop new product lines or new production processes in an attempt to reinvigorate the firm. 2. Leveraged buyout financing is provided to aid management in taking a public pany private through a management or leveraged buyout. d: Discuss guidelines for successful venture capital investing.  A venture capitalist should not try to run a business as the entrepreneur is likely to know what is best if she has significant experience in the industry.  A venture capitalist should treat his portfolio of panies as his own children. Sometimes children need to be pushed, but fairness should not be sacrificed.  The venture capitalist should provide help when needed. They should also provide a shoulder for the entrepreneur to lean on in times of difficulty. In other words, nurturing is an important aspect of a venture capitalist’s role and the venture capitalist should not pull the plug too soon if the opportunity to achieve the investment’s original potential seems to be absent or fading.  The venture capitalist should be realistic and maintain his/her objectivity in the face of the enthusiasm of the entrepreneurs. e: Distinguish between the direct and indirect benefits of venture capital investment. The direct benefits of venture capital investing are: 1. Capital formation. 2. Local economic development. 3. Economic expansion 4. Technological growth and innovation. 5. Employment growth. 6. Competitive adaptation in global markets. These benefits also include an improved quality of life for users of products created from technological innovations, such as, medical diagnostics and scientific improvements. Moreover, venture capital funded panies also improve the quality of life of their employees. The indirect benefits of venture capital investing are: 1. Effect on existing ways of doing business. The growth of panies financed by venture capital has led to new sale。