Last year you bought shares in the Diamond Mutual Fund, which has total assets of $100,000,000,...

  

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Last year you bought shares in the Diamond Mutual Fund, which has total assets of $100,000,000, liabilities of $5,000,000, and $7,500,000 shares outstanding. (a) What is the net asset value? (b) If the current price is $10, is this a good deal? 2. Back-end Load. You bought $3,500 worth of mutual funds with a back-end load of 3% if you sell within the first year. It decreases 1% a year afterward. (a) If you sell during the fifth year, how much will be the back-end load? (b) Did you make a good decision buying such a mutual fund? 3. Profits and Taxes. A year ago you invested $3,000 by buying 300 shares of the Canon Ball Mutual Fund, You reinvested the dividends, so you now has 350 shares. So far, the NAV you're your investment has risen from $10 per share to $12.00. (a) What is the percentage increase in the NAV of your mutual fund? (b) If you redeemed the first 100 shares of your mutual fund investment for $12 per share, what would be his capital gain over the amount invested? (c) Assuming your income taxes are at the 15 percent rate, how much income tax will you have to pay if you sell those first 100 shares? Last year you bought shares in the Diamond Mutual Fund, which has total assets of $100,000,000, liabilities of $5,000,000, and $7,500,000 shares outstanding. (a) What is the net asset value? (b) If the current price is $10, is this a good deal? 2. Back-end Load. You bought $3,500 worth of mutual funds with a back-end load of 3% if you sell within the first year. It decreases 1% a year afterward. (a) If you sell during the fifth year, how much will be the back-end load? (b) Did you make a good decision buying such a mutual fund? 3. Profits and Taxes. A year ago you invested $3,000 by buying 300 shares of the Canon Ball Mutual Fund, You reinvested the dividends, so you now has 350 shares. So far, the NAV you're your investment has risen from $10 per share to $12.00. (a) What is the percentage increase in the NAV of your mutual fund? (b) If you redeemed the first 100 shares of your mutual fund investment for $12 per share, what would be his capital gain over the amount invested? (c) Assuming your income taxes are at the 15 percent rate, how much income tax will you have to pay if you sell those first 100 shares?

Answer rating: 100% (QA)

1 Net Asset Value NAV a Net Asset Value NAV is calculated by subtracting the total liabilities from the total assets and then dividing by the number o... View the full answer