Question
1. The initial commissions for Class A is $____. (Round to the nearest cent.) The back-end commission for Class A is $____. (Round to the
1. The initial commissions for Class "A" is $____. (Round to the nearest cent.)
The back-end commission for Class "A" is $____. (Round to the nearest cent.)
The total value lost to annual fees and expenses for Class "A" over the two-year holding period is $____. (Round to the nearest cent.)
2. The initial commissions for Class "B" is $____. (Round to the nearest cent.)
The back-end commission for Class "B" is $____. (Round to the nearest cent.)
The total value lost to annual fees and expenses for Class "B" over the two-year holding period is $____. (Round to the nearest cent.)
3. The initial commissions for Class "C" is $____. (Round to the nearest cent.)
The back-end commission for Class "C" is $___. (Round to the nearest cent.)
The total value lost to annual fees and expenses for Class "C" over the two-year holding period is $____. (Round to the nearest cent.)
Please answer all parts of this question.
Class "C" Cost Front-end load Back-end load Class "A" 5.31 0.00 Class "B" 0.00 4.13 Declining 1% per year 0.80 0.40 0.00 1.28 First year only 0.80 1.00 Management fee 12b-1 fee 0.80 0.20 For each share class, calculate (1) how much you would pay in initial commissions, (2) how much you would pay in back-end commissions if you sold after two years, (3) how much in value is lost to annual expenses over a two-year holding period. Assume you purchased $2,000 worth of shares in this fund, and that prior to reductions for management and 12b-1 fees the gross fund return was 11.00 percent each year. Click on the table icon to view the FVIF tableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started