Your client decides to split their investment 50/50 into 2 investment products, below is their financial information
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Question:
Your client decides to split their investment 50/50 into 2 investment products, below is their financial information at the end of three years for the Mutual Fund.
Year - 3
Interest - $13,961.43
Reinvested Dividends - $37,230.49
Reinvested Capital Gains - $56,987.15
Unit Balance - 37,365.00
Current NAVPS - $24.91
Account Value - $930,762.15
- If your client invested $780,000 at an NAV of $20.50, and does not add to or withdraw from the fund except for the automatic reinvestment of distributions, what would their adjusted cost base be at the end of the 3rd year?
- What would be the capital gain if your client sold the fund?
- What would be the simple return realized over the three years, expressed as a percentage change in NAVPS?
- What would be the compounded annualized return over the 3 years?
- What percentage of your client's realized return is attributable to distributions?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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