ANSWERS MIGHT BE CORRECT The Emerging Growth and Equity Fund is a “low-load\" fu
ID: 2805395 • Letter: A
Question
ANSWERS MIGHT BE CORRECT
The Emerging Growth and Equity Fund is a “low-load" fund. The current offer price quotation for this mutual fund is $16.03, and the front-end load is 1.85 percent. a. What is the NAV? (Round your answer to 2 decimal places.) Net asset value 16.33 b. If there are 25.2 million shares outstanding, what is the current market value of assets owned by the fund? (Do not round intermediate calculations. Round your answer to the nearest whole number) Market value of assets 411,000,000Explanation / Answer
a.
Offer price = $16.03
Front Load = 1.85%
Net assets value = $16.03 / (1 - 1.85%)
= $16.03 / 0.9815
= $16.33
Net assets Value is $16.33.
b.
Number of share outstanding = 25,200,000
NAV = $16.33
Market value of assets = 25,200,000 × $16.33
= $411,570,046.
Total market value of assets is $411,570,046.