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Anna11 [10]
3 years ago
6

You are considering investing in a no-load mutual fund with an annual expense ratio of .6% and an annual 12b-1 fee of .75%. You

could also invest in a bank CD paying 6.5% per year. What minimum annual rate of return must the fund earn to make you better off in the fund than in the CD
Business
2 answers:
Vikentia [17]3 years ago
6 0

Answer:

7.85%

Explanation:

Therefore;

CD paying per year + annual expense ratio + annual 12b-1 fee

6.5 + .06 +.075 = 7.85%

The minimum annual rate of return must the fund earn to make you better off in the fund than in the CD is 7. 85%

aev [14]3 years ago
3 0

Answer:

7.85%

Explanation:

12b-1 fees and management fees (annual expense ratio) represent the annual expenses that the mutual fund managers deduct from your gross returns.  

net return = gross return - annual expense ratio - 12b-1

if you want a net return ≥ 6.5% (given by a CD), then:

6.5% = gross return - 0.6% - 0.75%

gross return = 6.5% + 0.6% + 0.75% = 7.85%

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an investor buys a 10000 par 4.25 percent annual coupon tips security with three years to maturity. if inflation every sic month
mr_godi [17]

Answer:

the  final payment that investor would received is $11,843.36

Explanation:

The computation of the final payment that investor would received is shown below:

Adjusted face value is

= 10,000 × (1 + 2.5%)^(3 × 2)

= 11,596.93

Final payment = Coupon + adjusted principal

= 11596.93 × 4.25% ÷ 2 + 11,596.93

= $11,843.36

hence, the  final payment that investor would received is $11,843.36

8 0
3 years ago
On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (Use
sergeinik [125]

Answer:

interst expense 1,920 debit

     interest payable      1,920 credit

--to record year-end adjustment--

interest expense     1,280 debit

interest payable      1,920 debit

note payable       160,000 debit

     cash                               163,200 credit

--to record the honor of the note--

Explanation:

principal x rate x time = interest

principal 160,000

rate 8% annual

days from November 7th to December 31th: 54 days

160,000 x 0.08 x 54/360 = <em>1,920 interest expense</em>

at maturity:

160,000 x 0.08 x 90/360 = 3,200

3,200 total interest less 1,920 accrued interest = 1,280

8 0
3 years ago
The information content of a dividend increase generally signals that: A. the firm has a one-time surplus of cash.B. the firm ha
Dovator [93]

Answer:

E

Explanation:

Dividends thereafter will be lower

3 0
3 years ago
For each separate case below, follow the 3-step process for adjusting the accured expense account: Step 1: Determine what the cu
kari74 [83]

Answer:

A. 1. Salaries Payable = $0

2. Salaries Payable should equal $15,500

3. Debit Salaries Expense $15,500

Credit Salaries Payable $15,500

To accrue unpaid salaries expense for the year.

B. 1. Interest Payable = $0

2. Interest Payable should equal $250

3. Debit Interest Expense $250

Credit Interest Payable $250

To accrue unpaid interest expense for the year.

C. 1. Interest Payable = $0

2. Interest Payable should equal $875

3. Debit Interest Expense $875

Credit Interest Payable $875

To accrue unpaid mortgage interest expense for the year.

Explanation:

Adjusting journal entries are used to recognize transactions and events that do not have any cash basis because they are required under the accrual basis of accounting.  The accrual basis requires that transactions are recorded in the period they occur without reference to cash payment or receipt.

6 0
3 years ago
What can be learned about ancient greeks from this passage? check all that apply<br><br>​
olga55 [171]

Answer:

the greeks were powerful people at a time then got overpowered by athens and romans but that will change

Explanatin

5 0
3 years ago
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