A Mutual Fund Had NAV Per Share of $16

question 57

Multiple Choice

A mutual fund had NAV per share of $16.75 on January 1, 2012.On December 31 of the same year the fund's rate of return for the year was 26.6%.Income distributions were $1.79 and the fund had capital gain distributions of $2.80.Without considering taxes and transactions costs, what ending NAV would you calculate

• A)$17.44
• B)$13.28
• C)$14.96
• D)$17.25
• E)$16.62

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the owners' share.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of the company's stock, rather than cash.

Retained Earnings Statement

A financial report detailing the variations in retained profits over a definite time frame.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.