00:01
Hello students, in this question we have to find the total cost proceeds, total gain or loss and return on investment.
00:09
Here it is given that the number of shares here the number of shares is 500 and it is given that the offer price is 10 .20 dollars and the net asset value is 12 .80 dollars and the share dividends is 0 .67 dollars.
01:02
So first we can find the total cost from the given data.
01:06
You know that the total cost is number of shares into offer price.
01:27
Here it is given that the offer price is the purchase price of the shares.
01:34
So the number of shares is 500 into the offer price is 10 .20 dollars.
01:41
Hence we will get 5100 dollars.
01:46
Therefore the total cost is 5100 dollars.
01:58
Next we have to find the proceeds.
02:01
Here it is given that the net asset value is the price at which the shares were later sold.
02:14
So we can say that the proceeds from sale equals to shares into net asset value.
02:40
Here the number of shares is 500 into the net asset value is 12 .80 dollars.
02:48
Hence we will get 6400 dollars.
02:52
That is the proceeds from sale is 6400 dollars.
03:07
Next we have to find the gain or loss in sale.
03:11
Here gain on sale equal to proceeds minus total cost.
03:21
That is here the proceeds from sale is 6400 dollars minus the total cost is 5100 dollars.
03:47
Therefore it will be a gain...