Advantage to investors of an open-end mutual fund

Assignment Help Financial Management
Reference no: EM131188006

Which of the following is an advantage to investors of an open-end mutual fund?

Once all the shares have been sold, the investor does not have to put in more money.

The investors can sell their shares in the over-the-counter market with low transaction fees.

The fund agrees to redeem shares upon request.

The market value of the fund's shares may be higher than the value of the assets held by the fund.

Reference no: EM131188006

Questions Cloud

Provide social security benefits to future retirees : Which of the following is not a proposal for insuring that sufficient funds will be available to provide Social Security benefits to future retirees?
What is the firms market value capital structure : Bluefield Corporation has 5 million shares of common stock outstanding, 750,000 shares of 7 percent $100 par preferred common stock outstanding, and 250,000 11% coupon bonds outstanding, par value 1,000 each, interest paid semiannually. What is the f..
What is your best estimate of after-tax cost of debt : Gauss Corporation issued 20-year Bonds bearing a 9% coupon, payments made semiannually, 7 years ago. The bonds currently sells for 108 percent of par value. The company’s tax rate is 38 percent. The Book Value of this issue is $50 million. What is th..
What is the dollar cost of the announcement effect : Young Corpoartion stock currently sells for $40 per share. There are 1 million shares currently outstanding. The company announces plans to raise $5 million by offering shares to the public at a price of $40 per share.  If the underwriting spread is ..
Advantage to investors of an open-end mutual fund : Which of the following is an advantage to investors of an open-end mutual fund?
What were flotation costs as fraction of funds raised : Moonscape has just completed an initial public offering. The firm sold 4 million shares at an offer price of $10 per share. The underwriting spread was $.60 a share. The price of the stock closed at $14 per share at the end of the first day trading. ..
What is the minimum number of shares : The shareholders of the Pickwick Company need to elect five directors. There are 360,000 shares outstanding. what is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority voting?
Annual payments for this loan in both cases : A customer comes to you and asks to receive valuable advice supported with calculations on the purchase of a mini apartment. She/he has a choice to pay today entire old credit card debt in the amount of $80,000 that has annual interest rate of 3% and..
Financial planner you receive a call from the customer : As a financial planner you receive a call from the customer of your company who is planning to retire in year 2036. The person wants to withdraw from its account from 2036 until 2056 exactly $120,000 per year. How much money the person need to deposi..

Reviews

Write a Review

Financial Management Questions & Answers

  Estimating the weighted average cost of capital

Given the following data for Golf Corporation: market price/share = $13; Book value/share = $10; Number of shares outstanding = 100 million; market price/bond = $900; Face value/bond = $1,000; Number of bonds outstanding = 1 million; Calculate the pr..

  Using arithmetic and geometric growth rates

Suppose Powers Ltd. just issued a dividend of $2.62 per share on its common stock. The company paid dividends of $2.12, $2.19, $2.36, and $2.46 per share in the last four years. If the stock currently sells for $81, what is your best estimate of the ..

  Regarding common stock

Which of the following is NOT true regarding common stock?

  How much money do you have today

Twenty years ago, you deposited $800 into an account. You earned 6% APR compounded annually for the first 15 years, and then 6% compounded monthly for the last 5 years. How much money do you have in your account today? How much money do you have toda..

  Calculate the sustainable growth rate for webb

You have located the following information on Webb's Heating & Air Conditioning: debt ratio is 59 percent, capital intensity is 1.30 times, profit margin is 13.0 percent, and the dividend payout is 30.00 percent. Calculate the sustainable growth rate..

  Maturity paying coupon on semiannual basis will pay coupon

A bond with 14.5 years to maturity paying a coupon on a semiannual basis will pay the coupon for: If the semiannual coupon payment on a bond with a face value of $1,000 is $24.76, the annual coupon rate is:

  What are capital structure weights-cost of preferred equity

XYZ corp. currently has 50 million shares of common stock outstanding. Their current market price is $80 per share and have a beta of 1.15. XYZ has $1 billion of bonds outstanding, each with the market value of $1100. What is the cost of preferred eq..

  What is the companys current stock price

Ben corporation has sales of 5000000, net income of 800000, total assets of 2000000, and 100000 shares of common stock outstanding. if ben's P/E ratio is 12, what is the company's current stock price?

  Health care organization had revenues

Suppose that a health care organization had revenues of $300,000 for March and that the payer mix is as follows: PAYER PERCENT OF PATIENTS PAYMENT LAG Medicare 40 3 months Medicaid 20 3 months Blue Cross 15 2 months Other insurer 15 1 month Self-pay ..

  Lean implementation and supply chain development

Read the Case Study “Lean Implementation and Supply Chain Development at Oak Hills.” Write a report from the project team that answers the following questions. What are the specific quality problems Oak Hills is facing, and how will they influence th..

  What is the additional cash flow in year three

A new piece of equipment costs $100,000 and another $20,000 to modify it for its special use by your firm. The machine falls into the MACRS 3-year class, so that over its 4-year life the applicable MACRS depreciation rates are 33.33%, 44.45%, 14.81% ..

  What would be before-tax component cost of debt

KatyDid Clothes has a $110 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 8 percent, paid semi annually. What would be Katydid’s before-tax component cost of debt?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd