Calculate the annual return on the mutual funds

Assignment Help Financial Accounting
Reference no: EM132806944

Question - Ralph invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4.0 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.80 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 3 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period.

A. 0.1234%

B. 0.1224%

C. 0.1414%

D. 0.1324%

Reference no: EM132806944

Questions Cloud

What is the cost of the new cooler : An old cooler with a recorded cost of P150,000 and accumulated depreciation of P140,000 was sold for P4,000. What is the cost of the new cooler
What is the effective annual year : The par value is $1,000, and the bond matures in 6 years. If the bond currently sells for $911.37, what is yield to maturity? What is the effective annual year
Types of foreign-exchange exposure target may experience : The management of Target is nearly ready to proceed with their global expansion. Discuss the types of Foreign-Exchange exposure Target may experience.
Determine if the licence is impaired at the end : Determine if the licence is impaired at the end of 2017. At the end of 2017, Flounder Corporation owns a licence with a remaining life of 10 years
Calculate the annual return on the mutual funds : If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period
What would be the transfer pricing range : What would be the transfer pricing range if the divisions negotiate a price between themselves? Division B has asked Division A of the same company to supply
Describe the union organizing process : Describe the union organizing process. Explain what management can legally say and do when they learn an organization movement is in progress.
What is the amount of dividends received : The board of directors declares and pays a $55800 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020?
What was the purchase price : A bond with $80 annual coupons is purchased at a discount to yield i =10%. The write-up for the first year is $2.97. What was the purchase price

Reviews

Write a Review

Financial Accounting Questions & Answers

  Is the total shareholders equity shown in an entity

Is the total shareholder's equity shown in an entity's balance sheet equal to the entity's market capitalization at the reporting date?

  Explain the various methods of estimating cost

Explain the various methods of estimating cost. Describe the difference between organizational vision, core competencies, Organizational Strategies, Operating Plans and Actual Operations.

  Find what the value as of today of three payments

Whats the value as of today of three payments of $5000,$8000 and $9500 to be made by the end of the next 2 years,5 years and 8 years respectively.

  What pre-tax net annual savings would be realized

Whitmer inc. sells to customers all over the u.s., and all receipts come in to it's headquarteres in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 6.5% annual interest rate.

  Determine the value of the terminal loss or recapture

Calculate the profit margin ratio of the company and comment on the profitability performance of the company.determine the value of terminal loss or recapture

  What the organization consolidated cash flow statements

Assess what the organization's consolidated cash flow statements for the same time period say about its financial performance.

  How much money will memorial hospital have collected

5% written off as bad debt in the sixth month, at the end of March (3 months out), how much money will Memorial Hospital have collected?

  How describe the static budgets and flexible budgets

Describes 2 main types of budgeting: static budgets and flexible budgets.Provide an example of the type of business or company.

  Compute break-even point in dollar-contribution margin ratio

Rawling Corporation sells golf bags and has developed the following information: Prepare a detailed CVP income statement using the contribution margin format for Rawling Corporation for 2015. Compute the contribution margin per unit. Compute the cont..

  Calculate the appropriate capitalization rate on borrowings

Calculate the appropriate capitalization rate on general borrowings that would be used for capitalization of borrowing costs

  Provide a brief background of krispy kreme donuts

Calculate financial ratios of Profit Margin, EPS, Assets turnover ratio and compare to industry average. Show how you calculated each ratio.

  Compute the activity rate for each of activity cost pools

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of cu..

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