Question
An open end mutual fund has three stocks in its portfolio. The fund has 50,000 shares in stock A, 60,000 shares in stock B, and
An open end mutual fund has three stocks in its portfolio. The fund has 50,000 shares in stock A, 60,000 shares in stock B, and 70,000 shares in stock C. Stock A is currently traded at $80 per share, stock B at $90, and stock C at $100. The fund has borrowed $1,000,000 and its accrued management fee with the portfolio manager is $100,000. The fund has 3 million shares outstanding. The fund charges a front-end load of 5%.
a. What is the net asset value of the fund? (Keep your answer to only two decimals)
b. What is the offering price of the fund?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
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