The MaxFee Mutual Fund has a front-end load of 8.5%. If its net asset value (NAV) per share is currently $32, for what price can an investor buy shares of the fund?(Round your answer to the nearest cent.)

Question

Quizplus · Accepted Answer

If the MaxFee Mutual Fund has a front-end load of 8.5% and a net asset value per share of $32, an investor can buy shares of the fund at its offer price of $34.97. Offer price = NAV/(1 - % load) = $32/(1 - 0.085) ≈ $34.97.

The MaxFee Mutual Fund Has a Front-End Load of 8