Answer:
Fee based fund is the correct answer to the given question
Explanation:
In the fee based funds exercise the money is charged directly to customers.The Fee-Based Funds is imposing the charge of sales to the customer .The Fee-based funds consultants could charge an extra payment of fixed price according to the company policy .
- When the company sells the mutual fund in a fee-based consideration individuals will buy the bond fund Series of the F units.
- All the other options are not related to imposing the sales charge that's why they are incorrect option .
Is there more to this question??? What do you need to know??
Answer:
1. $3,59,666.66
2. $4,10,066.66
Explanation:
1. The computation of value of firm is shown below:-
As the Earning before interest and tax given remains the same, this impact that there is no growth rate in the earnings to consider.
= Earning before interest and tax × (1 - Tax) ÷ Cost of equity
= $83,000 × (1 - 0.35) ÷ (0.15)
= $53,950 ÷ 0.15
= $3,59,666.66
2. The computation of value of levered firm is shown below:-
Value of unlevered firm + Debt × Tax rate
= 3,59,666.66 + ($144,000 × 35%)
= $4,10,066.66