The World Income Appreciation Fund has current assets with a market value of $5.
ID: 2637876 • Letter: T
Question
The World Income Appreciation Fund has current assets with a market value of $5.7 billion, 640 million shares outstanding, and a current market price quotation of $9.4. Calculate the front-end load. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
The World Income Appreciation Fund has current assets with a market value of $5.7 billion, 640 million shares outstanding, and a current market price quotation of $9.4. Calculate the front-end load. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)
Explanation / Answer
NAV of the fund = market value of fund / number of outstanding shares
= $5.7 billion / 640 million shares
= $8.91
The current market quotation = $9.4.
Front end load = $9.4 - $8.91 = $0.49
Front end load based on NAV = $0.49 / $8.91
= 5.54%
Front end load percentage Based on Market price = $0.49 / $9.4
= 5.21%
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