Suppose you purchase 5,000 shares of a closed-end mutual fund at its initial public offering; the offer
Question:
Suppose you purchase 5,000 shares of a closed-end mutual fund at its initial public offering; the offer price is $10 per share. The offering prospectus discloses that the fund promoter gets an 8 percent fee from the offering. If this fund sells at a 7 percent discount to NAV the day after the initial public offering, what is the value of your investment?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
Given Data of shares 5000 Price ...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
Question Posted:
Students also viewed these Accounting questions
-
You buy 100 shares in a no-load mutual fund at its net asset value of $10. During the year, the mutual fund distributes $0.75 in dividends. You redeem the shares for their net asset value of $12.03,...
-
In a January 2000 prospectus for its initial public offering of shares, Apex Oil Discovery Co. (AODC) estimated a sizable volume of oil production based on the studies of two geologists and a test...
-
Prudhoe Bay Oil Co. is having its initial public offering (IPO) of company stock. To create public interest in its stock, Prudhoe Bays chief financial officer has blitzed the media with press...
-
Horizontal analysis (trend analysis) percentages for Epstein Companys sales, cost of goods sold, and expenses are shown below. Did Epsteins net income increase, decrease, or remain unchanged over the...
-
What is a relevant cost? Identify the two types of relevant costs.
-
Faye Jaworski, CPA, is auditing the financial statements of Fulbright Company. As she is nearing the audit completion date, Jaworski realizes that she needs to evaluate whether all material...
-
What do you know about the mathematical value of the annual worth of a project under each of the following conditions? a. The present worth of the project is greater than 0 . b. The present worth of...
-
Cepeda Corporation has the following cost records for June 2014. Instructions (a) Prepare a cost of goods manufactured schedule for June 2014. (b) Prepare an income statement through gross profit for...
-
1. there are two different schools of thought on how to lower gasoline prices and reduce U.S. dependence on foreign oil. One is to increase supply of oil (drilling offshore), and the other is to...
-
Gigi transfers real estate (basis of $60,000 and fair market value of $40,000) to Monarch Corporation in exchange for shares of 1244 stock. (Assume that the transfer qualifies under 351.) a. What...
-
Suppose you're evaluating three alternative MMMF investments. The first fund buys a diversified portfolio of municipal securities from across the country and yields 3.2 percent. The second fund buys...
-
The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.7 percent. If you had invested $25,000 in this fund at the...
-
In Problem 13.5, you used the GPA to predict the overall satisfaction of university students (stored in UPFBE ). Evaluate whether the assumptions of regression have been seriously violated. Problem...
-
A 258.93 kg box is resting on a table. The table's surface is 0.75000 m above the floor, and the floor is 6.096 m above the ground. How much gravitational potential energy does the box have relative...
-
Suppose you wanted to show 2+4+6+8+...+2n = n(n+1) a) What is the basis step? b) What is P(k)? c) What is P(k+1)? c) (7 Points) Show P(k)=P(k+1)
-
ournal entry richard corp granted 4800 options to its officers each option entitles the holder to purchase one share of richard 5 par value of common stock at 30 per share anytime for next 5 years....
-
1. A motorised gearbox has a reduction ratio of 50:1. The power input to the gearbox is 5 kW at 1440 RPM. The gearbox efficiency is 85% under maximum load conditions. The output shaft of the gearbox...
-
The City of Gotham used to be crime-ridden. Since the city government cooperated with Batman, the crime rate has dropped dramatically. Suppose people in general likes low crime rates, although the...
-
What does X-bar stand for? a. The average of a sample b. The unknown standard deviation in a process that we have to solve for c. A shady bar in West Philadelphia d. The maximum observed value in a...
-
The maximum pressure that can be developed for a certain fluid power cylinder is 15.0 MPa. Compute the required diameter for the piston if the cylinder must exert a force of 30 kN.
-
You are given the returns for the following three stocks: Calculate the arithmetic return, geometric return, and standard deviation for each stock. Do you notice anything about the relationship...
-
Suppose that an investor opens an account by investing $1,000. At the beginning of each of the next four years, he deposits an additional $1,000 each year, and he then liquidates the account at the...
-
What is the Analees return objective? a. 6.67 percent b. 6.17 percent c. 3.83 percent
-
O O A Dundas Company's inventory records for its retail division show the following at May 31: (Click the icon to view the accounting records.) At May 31, 10 of these units are on hand. Dundas...
-
4. R got 35% hike in his salary and 20% incentive on sales. If R sold goods worth Rs. 850 last year and the salary was Rs 70, then how much more does he earn this year with sales of Rs.900?
-
Teachers salaries have not been increasing as fast as the pay in many other types of work. Explain why you think this might be true. use graph of the supply and demand for teacher's labor to help...
Study smarter with the SolutionInn App