INVESTMENTS(LL)W/CONNECT
11th Edition
ISBN: 9781260433920
Author: Bodie
Publisher: McGraw-Hill Publishing Co.
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Chapter 4, Problem 7PS
Summary Introduction
Adequate information:
Net asset value of open ended fund- $ 10.70 per share
Front end load- 6%
To compute:
Offering price for the given fund
Introduction:
Front end load is the fees charged by the mutual fund companies at the time of issue of the units/shares over and above the net assets value. Front end load is always given as a percentage of the offering price.
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