Question
On January 4, 2007, David bought 350 units of the Sarissa Growth Fund, at $12.34 per unit, for a total outlay of $4,319. He purchased
On January 4, 2007, David bought 350 units of the Sarissa Growth Fund, at $12.34 per unit, for a total outlay of $4,319. He purchased the fund on a deferred sales charge (DSC) basis that is calculated on the market value, with the following schedule:
| Time of Redemption | Charge |
| Within the first year | 7% |
| 2nd year | 6% |
| 3rd year | 5% |
| 4th year | 4% |
| 5th year | 3% |
| 6th year | 2% |
| 7th year | 1% |
| After 7th year | No Charge |
On May 15, 2013, David redeems 300 units of the fund at a NAVPU of $16.50.
How much cash does David receive after the units have been redeemed and the deferred sales charges have been applied?
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Total NAVPU 3001650 495000 Less Deferred sal...
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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
1118022297, 9781118214169, 9781118022290, 1118214161, 978-1118098615
