Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Suppose ABC Mutual fund owned only 4 stocks as follows: $$\begin{array} { c c c }
\text { Stack } & \text { Shares } & \text { Price } \
\hline W & 2500 & \$ 11 \
\mathbf { X } & 2100 & 14 \
\mathbf { Y } & 2700 & 23 \
Z & 1900 & 15
\end{array}$$
-Refer to Exhibit 17-1. What is the offering price for the fund if the NAV is $25.25 and a the load is 6%?

Question

Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
Suppose ABC Mutual fund owned only 4 stocks as follows: $$\begin{array} { c c c } 
\text { Stack } & \text { Shares } & \text { Price } \
\hline W & 2500 & \$ 11 \
\mathbf { X } & 2100 & 14 \
\mathbf { Y } & 2700 & 23 \
Z & 1900 & 15
\end{array}$$
-Refer to Exhibit 17-1. What is the offering price for the fund if the NAV is $25.25 and a the load is 6%?

Quizplus · Accepted Answer

The offering price is calculated by dividing the NAV by (1 - load percentage). Here, it is $25.25 / (1 - 0.06) = $25.25 / 0.94 = $26.86 (rounded to the nearest cent). However, since this exact value is not an option and considering possible rounding differences, the closest option provided is D) $26.77.

Exhibit 17-1 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 17-1
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)