Question

Consider a no-load mutual fund with $900 million in assets and 24 million shares at the start of the year, and $1,040 million in assets and 16.42 million shares at the end of the year. During the year investors have received income distributions of $4.50 per share, and capital gains distributions of $3.14 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? What is the NAV at the END of the year? What is the rate of return on the fund?

Name: consider a no load mutual fund with 900 million in assets and 24 million shares at the start of the year and 1040 million in assets and 1642 million shares at the end of the year during the 49256
Uploaded: 2023-08-21T02:19:54-08:00
Duration: 4 min 16 s
Channel: Akash M
Description: consider a no load mutual fund with 900 million in assets and 24 million shares at the start of the year and 1040 million in assets and 1642 million shares at the end of the year during the 49256

          Consider a no-load mutual fund with $900 million in assets and 24 million shares at the start of the year, and $1,040 million in assets and 16.42 million shares at the end of the year. During the year investors have received income distributions of $4.50 per share, and capital gains distributions of $3.14 per share. Assume that the fund carries no debt.
What is the NAV at the START of the year?
What is the NAV at the END of the year?
What is the rate of return on the fund?

Added by Ian G.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

08/21/2023

Step 1

- NAV (Net Asset Value) is calculated by dividing the total assets by the total number of shares. - At the start of the year, the total assets are $900 million and the total number of shares is 24 million. - Therefore, the NAV at the start of the year is: \[ Show more…

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Consider a no-load mutual fund with $900 million in assets and 24 million shares at the start of the year, and $1,040 million in assets and 16.42 million shares at the end of the year. During the year investors have received income distributions of $4.50 per share, and capital gains distributions of $3.14 per share. Assume that the fund carries no debt. What is the NAV at the START of the year? What is the NAV at the END of the year? What is the rate of return on the fund?