The Figure Given Below Shows the Demand Curves [D₁ and D₂]

question 79

Multiple Choice

The figure given below shows the demand curves [D₁ and D₂] and the supply curve [S₁] of capital.Figure 17.1

-Consider a mutual fund with a 6 percent back-end load that decreases to 0 percent in the seventh year. How much of the load will an investor have to bear if she sells it off in the seventh year?

• A)1 percent of the load
• B)0 percent of the load
• C)2 percent of the load
• D)6 percent of the load
• E)4 percent of the load

---

Definitions:

Date of Declaration

The specific date on which a company's board of directors announces its intention to pay a dividend to shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before common stock dividends.

Par Common Stock

The nominal or face value assigned to common stock by the issuing company.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before common dividends can be distributed.