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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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How are credit unions different than banks?
dusya [7]

Answer:

Commercial banks are for-profit and credit unions are not-for-profit.

8 0
3 years ago
Mary knits sweaters for sale. Her fixed costs are $100. When she makes 10 sweaters in one month, Mary must spend $15 on wool. To
34kurt

Answer:

$2

Explanation:

Given that

The fixed cost = $100

Cost on wool if 10 sweater are made in a month = $15

Cost on wool if 11 sweater are made in a month = $17

Since it involves no other cost

So, the marginal cost of the eleventh sweater is

= Cost on wool when 11 sweater made in one month - Cost on wool when 10 sweater made in one month

= $17 - $15

= $2

4 0
4 years ago
Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at t
Oxana [17]

Answer:

A) $50

Explanation:

The computation of the intrinsic value of the stock is shown below:

But before that the required rate of return is computed by using CAPM

Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)

= 5% + 0.5 × (13% - 5%)

= 5% + 0.5 × 8%

= 5% + 4%

= 9%

Now the intrisinc value is

= Dividend ÷ (required rate of return - growth rate)

= $6 ÷ (9% - (-3%)

= $6 ÷ 12%

= $50

Hence, the intrinsic value of the stock is $50

Therefore the correct option is A.

4 0
3 years ago
Using scenarios to help recognize outcomes and plan better falls under the critical thinking idea of
Yuki888 [10]
The answer for this qeustion is: Thinking in time
By using scenarios, we can formulate several outcomes that could possibly happen if we decided to follow a certain plan. 
If we do this, we could prepare our actions on how to deal with those outcomes before it actually happens in real life.
8 0
3 years ago
Please answer those 3 questions <br> (+ calcul please)
Slav-nsk [51]

Answer

1. D

2. C

3. A

Explanation

1.

To identify the return below is the formula to calculate the Return

Net Return = Current Worth - Total of Purchase

Net Return = $260,000 - $250,000

Net Return = $10,000

Answer 1 = D

2.

below is the formula to calculate Rate of Return

Rate of Return = ( Current Value - Original Value)/Original Value

Rate of Return = ($260,000-$250,000)/$260,000

Rate of Return =

.

Rate of Return = 3.86%

if round off it we found

Rate of Return = 4%

Answer 2 = C

3.

first we need to calculate the what is the value of after the inflation 2.5%

260000 \times2.5\%

$6,500

current worth - inflation amount

$260,000 - $6,500

$253,500

now calculate the rate of return

($253,500 - $250,000)/($253,000)

$3,500/$253,000

1.38%

if we round off 1.38% then we found 1.5%

Answer 3 is A 1.5%

8 0
3 years ago
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