You Are Investing $8,000 in a Mutual Fund That Charges

question 51

Multiple Choice

You are investing $8,000 in a mutual fund that charges a 4.50 percent front-end load.The offering price is $24.70 a share.What will your investment be worth immediately after your shares are purchased?

• A) $7,520
• B) $7,640
• C) $8,000
• D) $8,360
• E) $8,420

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Definitions:

Subsidiary

An entity that is controlled by another entity (known as the parent company).

Shares

units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders as dividends.

Goodwill Impairment

The process of evaluating and adjusting the carrying value of goodwill on the balance sheet when it exceeds the fair market value, indicating that the acquired asset is not as valuable as originally thought.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial reporting.