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adell [148]
3 years ago
7

An open-end fund has a net asset value of $12.70 per share. It is sold with a front-end load of 8%. What is the offering price?

(Round your answer to 2 decimal places.)
Business
1 answer:
Allushta [10]3 years ago
7 0

Answer:

$13.80

Explanation:

Calculation to determine the offering price

Using this formula

Offering Price = NAV/1-load

Let plug in the formula

Offering Price = $12.70/1-0.08

Offering Price =$12.70/0.92

Offering Price = $13.80

Therefore the offering price is $13.80

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Peter Watson is thinking about launching a small business consulting company. To get advice on how to​ proceed, he stopped by hi
Feliz [49]

Answer:

business plan

Explanation:

  • A business plan is a written overview of the future of your business, showing you what to do and how to do it.
  • When you write a section explaining your business strategy on the back of the envelope, you have written a plan or at least somebody's gem.
  • Business plans are inherently strategic.

so correct answer is business plan

4 0
3 years ago
Vance has a vested account balance in his employer-sponsored qualified profit-sharing plan of $40,000. He has two years of servi
Maurinko [17]

Answer: $5,000

Explanation:

Per the requirements of qualified plans that permit loans, the maximum amount that an individual can withdraw is whichever is lesser between $50,000 and 50% of their Vested Account Balance.

Vance in this scenario has a vested account balance of $40,000.

50% of that would be $20,000.

That means that he can be loaned $20,000. However, he already has an outstanding loan balance that must be accounted for of 15,000.

Subtracting those figures we have,

= 20,000 - 15,000

= $5,000

The maximum loan that Vance can take from the qualified plan is $5,000

7 0
3 years ago
Daryl is the founder of a successful smartphone application. He is detail-oriented and has high expectations of his employees. H
Lorico [155]

Daryl is the founder of a successful smartphone application. He is detail oriented and has high expectations of his employees. He rewards them with bonuses for a job well done but employees do not know him well. Daryl is a Transactional Leader.

Transactional Leader is a leader who rewards his employees for a job well done as well as punish them for a job bad done. There is a distance between the leader and the employees. Leader helps their employees in doing good work and also rewards them when they do good, but they have a formal distance and relationship with each other. He expects high from his employees. That is why he rewards them or punish them as well.

3 0
3 years ago
Read 2 more answers
Suppose that all 75 employees of a company received a raise of $150 per month? How would this affect the mean salary of all empl
Svetlanka [38]

Answer:

Mean Salary of all employees will be increase by $150.

Explanation:

$150 raise of all 75 employees will be averaged and result in the $150 increase in the mean of all employees salary.

Suppose:

The Sum of all Employees salary = $1,500,000

The Mean of all Employees salary = $100,000 / 75

The Mean of all Employees salary = $20,000

The Sum of all Employees salary after raise = $1,500,000 + ( 75 x 150 )

The Sum of all Employees salary after raise = $1,511,250

The Mean of all Employees salary after raise = $1,511,250 / 75

The Mean of all Employees salary after raise = $20,150

Hence Proved that Mean Salary of all employees will be increase by $150.

7 0
3 years ago
You pay $21,600 to a mutual fund, which has a NAV of $18 per share at the beginning of the year. The fund deducted a front-end l
Tomtit [17]

Answer:

4.23%

Explanation:

For computing the rate of return on the fund, we need to do following calculations

1. The fund after deducting the front-end load is

= $21,600 - $21,600 × 4%

= $21,600 - $864

= $20,736

2. Now number of bought is

= $20,736 ÷ $18 per share

= $1,152

3. The closed NAV is

= $18 + $18 × 10%

= $18 + $.8

= $19.8

4. So, the end year asset value is

= Closed NAV × number of shares bought

= $19.8 × 1,152

= $22,809.60

5. Now the year end investment value after considering the expense ratio is

= $22,809.60 × (1 - 1.3%)

= $22,513.0752

6. Now the rate of the return is

= ($22,513.0752 - $21,600) ÷ ($21,600)

= 4.23%

8 0
3 years ago
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