Lee Ray bought 210 shares of a mutual fund with a NAV of $12.85. This fund also has a load charge of 7%. a. What is the offer price? (Round your intermediate and final answer to the nearest cent.) Offer Price: b. What did Lee pay for his investment? (Round your intermediate and final answer to the nearest cent.) Investment to be paid:

Lee Ray bought 210 shares of a mutual fund with a NAV of $12.85. This fund also has a load charge of 7%. a. What is the offer price? (Round your intermediate and final answer to the nearest cent.) Offer Price: b. What did Lee pay for his investment? (Round your intermediate and final answer to the nearest cent.) Investment to be paid:

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 7FPE

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Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
Lee Ray bought 250 shares of a mutual fund with an NAV of $13.85. This fund also has a load charge of 7%. a. What is the offer price? (Round your intermediate and final answer to the nearest cent.) b. What did Lee pay for his investment? (Round your intermediate and final answer to the nearest cent.)
David Nash has $100,000 to invest in a mutual fund.a. How many shares can he purchase in a no-load mutual fund whose net assetvalue (NAV) is $50 per share?b. How many shares can he purchase in a loaded mutual fund whoseNAV is $50 per share and that has a front-loaded sales charge of5 percent?
You purchased 5,000 shares of a mutual fund at a price of $7.50 per share. You later sell those shares for $8.35 per share. During the time you owned the shares, the fund paid a dividend of $0.41 pershare. Determine your investment return on the fund? Round answer to nearest tenth of a percent.
About a year ago, Eric Robertson bought some shares in the Diamond Mountain Mutual Fund. He bought the fund at $25.50 a share, and it now trades at $26.30. Last year, the fund paid dividends of $0.72 a share and had capital gains distributions of $2.50 a share. Assume that the mutual fund distributed the dividends and capital gains at the end of the year. Using the approximate yield formula, what rate of return did Eric earn on his investment? Round the answer to two decimal places. % Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places. % What rate of return would he have earned if the stock had risen to $30 a share? Round the answer to two decimal places. %
Three years ago, you invested in the Future Investco Mutual Fund by purchasing 1,000 shares of the fund at a net asset value of $24.00 per share. The fund has a 3% load that you elect to pay in addition to your initial investment to ensure that the full NAV is invested. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,100 shares in this fund for $27.98 per share. What is the compounded rate of return on this investment over the 3-year period? Select one: a. 7.58% b. 7.08% c. 24.51% d. 7.53% e. 3.72%
Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,300shares of the fund at the price of $17.05 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 1,450 shares in this fund for $20.44 per share. If there were a 1% load on this fund, what would your rate of return be?
Assume that one year ago, you bought 240 shares of a mutual fund for $27 per share and that you received an income dividend of $0.34 cents per share and a capital gain distribution of $1.07 per share during the past 12 months. Also assume the market value of the fund is now $29.50 a share. Calculate the total return for this investment if you were to sell it now. Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
You invested in the no-load Best Mutual Fund one year ago by purchasing 900 shares of the fund at the net asset value of $18.58 per share. The fund distributed dividends of $1.95 and capital gains of $1.98. Today, the NAV is $19.90. If Best was a load fund with a 3% front-end load, what would be the HPR?
Twelve months ago, you purchased the shares of a no-load mutual fund for $22.05 per share. The fund distributed cash dividends of $0.70 and capital gains of $1.30 per share. If the net asset value of the fund is currently $24.45, what was your annual return on the investment? Round your answer to two decimal places. % If the value of the shares had been $21.14, what would have been your annual return? Round your answer to two decimal places. %
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