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Bell Ltd sells two types of shares, C + and C + + . C + shares are sold with front - end load fee

Bell Ltd sells two types of shares, C+ and C++. C+ shares are sold with front-end load fee of 10% whilst Type C++ shares are not subject to front-end load fee but are charged to investment management fee of 5% per annum as well as exit (back-end load) fee that start at 15% and reduce by 3% for each full year the investor holds the portfolio (until the 5th year). The annual rate of return for both types of shares is 17%. Bell Ltd sells two types of shares, C+ and C++.C+ shares are sold with front-end load fee of 10% whilst
Type C++ shares are not subject to front-end load fee but are charged to investment management fee of
5% per annum as well as exit (back-end load) fee that start at 15% and reduce by 3% for each full year
the investor holds the portfolio (until the 5th year). The annual rate of return for both types of shares is
17%.
(a) Calculate the value of Rs 500,000 investment made by investor Mr Leaf in Type C+ shares if the
shares are disposed after (i)1 year and (ii)4 years.
[8 Marks]
(b) Calculate the value of Rs 500,000 investment made by investor Mrs Beans in Type C++ shares
if the shares are disposed after (i)1 year and (ii)4 years.
[14 Marks]
(c) As an analyst, which types of shares will you recommend the investor to buy?
[3 Marks]
(a) Calculate the value of Rs 500,000 investment made by investor Mr Leaf in Type C+ shares if the shares are disposed after (i)1 year and (ii)4 years.
[8 Marks]
(b) Calculate the value of Rs 500,000 investment made by investor Mrs Beans in Type C++ shares
if the shares are disposed after (i)1 year and (ii)4 years.
[14 Marks]
(c) As an analyst, which types of shares will you recommend the investor to buy?
[3 Marks]
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