Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Last year at this time, a mutual fund had an NAV of $13.20 per share. Over the past year the fund paid dividends of $0.80
Last year at this time, a mutual fund had an NAV of $13.20 per share. Over the past year the fund paid dividends of $0.80 per share and had a capital gains distribution of $1.20 per share. An investor who holds 600 shares of this fund decides to reinvest the dividends and capital gains distribution at an average NAV of $14.42. What is the current value of this investment assuming that the current NAV is $13.80? (Round off to the nearest $ amount.)
Step 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