1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jonny [76]
3 years ago
6

An investor purchased 100 shares of the cdl growth and income fund 3 years ago when the pop was $12 and the nav was $11.50. all

distributions have been taken in cash. the investor submits an order to liquidate this account when the next computed pop is $11 and the nav is $10.45. the tax consequences of this liquidation would be a
Business
1 answer:
Norma-Jean [14]3 years ago
3 0

The investor will show a capital loss of $155.

We gather the following information from this question:

Pop of the fund three years ago : $12

NAV of the fund three years ago : $11.50

Current Pop : $11

Current NAV : $10.45

Number of shares : 100 shares.

We need to calculate capital loss or gain on the 100 shares in the mutual fund.

While taking the cost per unit, <u>we need to consider the public-offer-price (pop) into consideration, since an investor can only buy the shares at pop</u>.

Similarly, while selling the shares, the <u>shareholder can liquidate his position by selling back to the mutual fund at the NAV prevailing at the end of the business day</u> on which he wants to sell.

So, the formula to calculate capital gain or loss is:

Capital gain or (loss) = (NAV per unit at liquidation - POP at purchase ) * No. of shares

Capital gain or (loss) = ($10.45 - $12 ) * 100

Capital gain or (loss) = ($155)

You might be interested in
PLEASE HELP
loris [4]
<span>C) Cash, debit $11,000; Katelyn's Capital, credit $11,000
</span>
6 0
3 years ago
Read 2 more answers
Which of the following best represents a "supply curve"?
mestny [16]

Answer:

I think the answer is B

Explanation:

if theres a drop in supply there will be a price change aswell, most of the time increases the price of products.

6 0
3 years ago
You and four other team members attend a seminar on conflict. The seminar costs $150 per person. You will need to drive two cars
Sveta_85 [38]

Answer: $825

Explanation:

Total seminar cost for the team;

= 150 * 5 people

= $750

Two cars need to be driven the 100-mile round trip at 37.5 cents per mile.

= 2 * 100 * 37.5

= 7,500 cents

= $75

Cost of Seminar = 750 + 75 = $825

5 0
3 years ago
An anticipated purchase of equipment for $1,000,000, with a useful life of eight years and no residual value, is expected to yie
exis [7]

Answer:

3 years

The average rate of return method includes the entire amount of the income earned over the life of the proposal.

a. rate of return on investments

b. may be reconsidered if funds later become available.

Explanation:

Cash payback period measures how long it takes to recover the amount invested in a project from the cumulative cash flow.

Amount invested = $-1,000,000

Amount recovered in year 1 = $-1,000,000 + $400,000 = $-600,000

Amount recovered in year 2 = $-600,000 + 320,00 = $-280,000

Amount recovered in year 3 = $-280,000 + 280,000 = 0

The amount invested is recovered In the 3 year

Average accounting rate = average net income/ average book value

Net present value is the present value of after tax cash flows from an investment less the amount invested. The interest rate used is the rate of return on investments.

The hurdle rate is the least acceptable rate that a project can have for it to be acceptable.

I hope my answer helps you

8 0
3 years ago
Charles Zimmerman owns an acre of swampy land just off the interstate. He would like to pave the surface and build a gas station
blagie [28]

B. legal and regulatory requirements

8 0
3 years ago
Other questions:
  • Suppose that the home country in the two-sector (manufacturing and agriculture) specific-factors model has a comparative advanta
    14·1 answer
  • Best Rate Inc., an insurance company, has seen considerable growth in its telephone-based direct sales division. The management
    14·1 answer
  • Zoe Corporation has the following information for the month of March: Cost of direct materials used in production$17,811 Direct
    8·1 answer
  • Organizational ________ can be exhibited by anyone at any level of an organization
    6·1 answer
  • Sharon is a 30-year-old stay-at-home mother to a toddler. life-span developmentalists would consider her to be:
    8·1 answer
  • Which of the following statements is correct?A. Economists consider opportunity costs to be included in a firm's total revenues.
    14·1 answer
  • Jack Taylor started Enterprise Leasing on the premise that if he treated his customers and employees well, profits would follow.
    5·1 answer
  • Loaded-Up Fund charges a 12b-1 fee of 1% and maintains an expense ratio of .75%. Economy Fund charges a front-end load of 2%, bu
    5·1 answer
  • One method used by some analysts to estimate the future value of a stock is the dividend growth model. This model would probably
    14·1 answer
  • chandler is using the selection filter so that certain values appear. he wants to show only the western states, but they are cro
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!