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4 years ago

Explain why the offer price is used to calculate the investment in a load mutual fund instead of the net asset value.

Business

2 answers:

tatuchka [14]4 years ago

6 0

When purchasing load mutual funds, you are charged a fee, or commission, which is added to the fund's net asset value.

xenn [34]4 years ago

3 0

Answer: The correct answer is: when you purchase load mutual funds, you are charged a fee, or commission, which is added to the fund's net asset value. The total of the net asset value and the commission, called the offer price, is the price you actually pay for each share of the fund.

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risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have lon

Ipatiy [6.2K]

Answer:

Price risk is the risk of a decline in a bond's value due to an increase in interest rates. This risk is higher on bonds that have long maturities than on bonds that will mature in the near future.

Reinvestment risk is the risk that a decline in interest rates will lead to a decline in income from a bond portfolio. This risk is obviously high on callable bonds. It is also high on short-term bonds because the shorter the bond's maturity, the fewer the years before the relatively high old-coupon bonds will be replaced with new low-coupon issues.

Which type of risk is more relevant to an investor depends on the investor's investment horizon, which is the period of time an investor plans to hold a particular investment.

3 0

4 years ago

Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is u

weeeeeb [17]

Answer:

D. Debit Accounts Receivable $7,344; credit Interest Revenue $144; credit Notes Receivable $7,200.

Explanation:

Interest: $7,200 × .06 × 120/360 = $144

The entry that Majesty should record on the maturity date for this dishonored note is :

Debit Accounts Receivable $7,344

Credit Interest Revenue $144

Credit Notes Receivable $7,200.

5 0

4 years ago

Read 2 more answers

Ed needs to take out a loan for $7,000 to purchase a car. His bank has offered him a loan at 10.0% interest, compounded monthly,

Evgesh-ka [11]

A is the answer i am very good at loans and the answer is A

8 0

3 years ago

Read 2 more answers

International Data Systems' information on revenue and costs is relevant only up to a sales volume of 121,000 units. After 121,0

laila [671]

Answer:

a. $534,000

b. $271,550

Explanation:

a. Compute operating income at 121,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($10.00 - $5.00)*121,000 - $71,000

Operating Income = ($5.00)*121,000 - $71,000

Operating Income =$605,000-$71,000

Operating Income = $534,000

Therefore operating income at 121,000 units is $534,000

b. Compute operating income at 221,000 units

Using this formula

Operating Income = (Price per unit - Variable cost per unit)*Units - Fixed costs

Let plug in the formula

Operating Income = ($6.80 - $5.25)*221,000 - $71,000

Operating Income = $1.55*221,000-$71,000

Operating Income = $342,550-$71,000

Operating Income = $271,550

Therefore operating income at 121,000 units at 221,000 units is $271,550

5 0

3 years ago

Lacy's Linen Mart uses the retail method to estimate inventories. Data for the first six months of 2019 include: beginning inven

Harman [31]

Answer:

A. $68,200

Explanation:

Retail Cost

Beginning inventory $60,000

$120,000

Plus: Net purchases. $312,000

$480,000

Goods available for sale $372,000

$600,000

Cost to retail percentage = $372,000 ÷ $600,000 = 62%

Less : Net sales

($490,000)

Estimated ending inventory at retail

$110,000

Estimated ending inventory at cost

62% × $110,000 = $68,200

4 0

3 years ago