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The following information applies to the next two questions (34-35) Consider a no-load mutual fund with $200 million in assets and 10 million shares at
The following information applies to the next two questions (34-35) Consider a no-load mutual fund with $200 million in assets and 10 million shares at the start of the year, and $250 million in assets and 11 million shares at the end of the year. During the year investors have received income distributions of $0.50 per share and capital gains distributions of $0.50 per share. The fund carries no debt and the total expense of 1% is charged at year-end (i.e., deducted from NAV). What is the NAV at the end of the year after 1% expense charge (i.e., what is NAV.)? 1. $20.00 2. $22.50 3. $22.72 4. $23.75 5. $25.00
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