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: Cengage Learning
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Chapter 13, Problem 7FPE
Summary Introduction
To calculate: The
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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.
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Repeat the calculation using a handheld financial calculator. Round the answer to two decimal places.
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What rate of return would he have earned if the stock had risen to $30 a share? Round the answer to two decimal places.
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One year ago, Christos bought 1,100 units of the Dominion Aggressive Growth Fund at $20.40 per unit. Today a unit's value is $19.20.
During the year, the fund made a distribution of $0.50 per unit.
On this investment, what is Christos's income yield? (Round your answer to two decimal places.)
Last year your friend, who has not taken this investments class, invested $23 thousand into a fund with a 3.4% front-end load, a 1.5% annual expense ratio, and a NAV of $34.86 per share. The securities in the fund increased by 11.5 percent over the course of a year, and your friend sold the fund. What was your friend's rate of return on this investment? Enter answer in percents, accurate to two decimal places.
Chapter 13 Solutions
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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