Assume that one year ago, you bought 250 shares of a mutual fund for $24 per sha
ID: 2760785 • Letter: A
Question
Assume that one year ago, you bought 250 shares of a mutual fund for $24 per share, you received an income distribution of $0.15 cents per share and a capital gain distribution of $0.35 cents per share during the past 12 months. Also assume the market value of the fund is now $26 a share. Calculate the total dollar return for this investment if you were to sell it now. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Jane Ramirez owns shares in the Touchstone Health and Biotechnology Fund that have a current value of $15,800. The fund charges an annual 12b-1 fee of 0.65 percent. What is the amount of the 12b-1 fee Ms. Ramirez must pay? (Round your answer to 2 decimal places.) Mary Canfield purchased the New Dimensions bond fund. While this fund doesn't charge a front-end load, it does charge a contingent deferred sales load of 3.0 percent for any withdrawals in the first five years. Mary withdraws $9,500 during the second year. How much is the contingent deferred sales load? (Round your answer to 2 decimal places.) Bill Matthews invested $13,600 in the John Hancock Government Income fund. The fund charges a 4.25 percent commission when shares are purchased. Calculate the amount of commission Bill must pay. (Round your answer to 2 decimal places.) You are given the following information: Calculate the net asset value for the New Empire small-cap mutual fund. (Round your answer to 2 decimal places.)Explanation / Answer
1. Total dollar value return for inestment now = Income distributed x capital gains if sold now x no. of shares
Income distributed = $0.15+ $0.35 = $0.50 per share
Capital gain if shares are sold today = $26 - $24 = $2 per share.
Total dollar value return for inestment now = ($0.50 + $2) x 250 = $625
2. Amount of 12b-1 fees = $15800 x 0.65% = $102.70
3. Contingent deferred sales load = $9500 x 3% = $285
4. Amount of commisiion Bill must pay = $13600 x 4.25% = $578
5. Net Assets value = (Assets - liabilities) / total no. of outstanding shares
= ($330000000 - $11000000) / 330000000
= $0.97