The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 79

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-Consider a mutual fund with a 6 percent back-end load that decreases to 0 percent in the seventh year. How much of the load will an investor have to bear if she sells it off in the seventh year?

• A)1 percent of the load
• B)0 percent of the load
• C)2 percent of the load
• D)6 percent of the load
• E)4 percent of the load

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Definitions:

Tax Liability

The total amount of tax owed to governmental authorities, based on income, property value, transactions, or other taxable events.

Earnings Before Interest And Taxes (EBIT)

A measure of a firm’s performance without regard to how it is financed.

Net Working Capital

A measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.

Total Equity

The financial value representing the amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debts were paid off.