A Mutual Fund Had NAV Per Share of $16

question 65

Multiple Choice

A mutual fund had NAV per share of $16.75 on January 1,2009.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:

Financial Reports

Documents that provide an overview of the financial condition of an organization, including income statements, balance sheets, and cash flow statements.

Statements of Financial Accounting Concepts

A series of documents issued by the Financial Accounting Standards Board outlining the objectives and fundamental concepts underlying financial reporting and accounting practices.

General Objective

A broad primary goal or aim that an organization or individual plans to achieve in the long term.

Financial Reporting

The procedure of making known the financial situation of an organization to its management, those who invest in it, and the government.