Question
An open-end mutual fund has the following stocks: Stock Shares Stock Price A 12,500 $ 85 B 32,000 14 C 3,500 67 D 79,000 11
An open-end mutual fund has the following stocks:
| Stock | Shares | Stock Price | ||
| A | 12,500 | $ | 85 | |
| B | 32,000 | 14 | ||
| C | 3,500 | 67 | ||
| D | 79,000 | 11 | ||
The fund has 51,000 shares and liabilities of $128,000. Assume the fund is sold with a front-end load of 3.5 percent. What is the offering price of the fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Step by Step Solution
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Step: 1
To calculate the offering price of the mutual fund we need to consider the value of the stocks held ...
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
