What Is the Offering Price for a Mutual Fund with a NAV

question 8

Multiple Choice

What is the offering price for a mutual fund with a NAV of $22.50 and a load of 5 percent?

• A) $21.38
• B) $21.79
• C) $22.50
• D) $23.63
• E) $27.50

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Definitions:

Bonds Payable

Long-term debt instruments issued by corporations or governments, promising to pay the bondholder a specified sum of money at future dates.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.

Sales Revenue

The total amount of money received by a company from selling goods or services before any expenses are deducted.

Balance Sheet Accounts

Accounts that are represented on the balance sheet, including assets, liabilities, and equity accounts.