INVESTMENTS (LOOSELEAF) W/CONNECT
11th Edition
ISBN: 9781260465945
Author: Bodie
Publisher: MCG
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Question
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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An open-end fund has a net asset value of $10.70 per share. It is sold with a front-end load of 6%. What is the offering price?
If the offering price of an open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%, what is its net asset value?
The Closed Fund is a closed-end investment company with a portfolio currently worth $245 million. It has liabilities of $12 million and 17 million shares outstanding.
a. What is the NAV of the fund? (Round your answer to 2 decimal places.)
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Chapter 4 Solutions
INVESTMENTS (LOOSELEAF) W/CONNECT
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