Matt Owns 724

question 5

Multiple Choice

Matt owns 724.08 shares of a fund which has a current NAV of $44.17. He has owned all of these shares for 3.3 years. The fund charges a contingent deferred sales charge which starts at 6 percent for the first year and declines by 1 percent each year. How much cash will he receive if he redeems all of his shares today?

• A) $29,396.63
• B) $29,709.36
• C) $30,334.82
• D) $30,647.55
• E) $31,023.14

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Definitions:

Sales Taxation

A tax imposed on the sale of goods and services, which is typically collected by the seller and passed on to the government.

Model Business Corporation Act

A comprehensive statute that serves as a guideline for states in the United States to standardize and regulate the formation, operation, and dissolution of corporations.

Maximum Potential

The highest achievable or possible level of performance or success.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from being liable for the company's debts.