You Own 600 Units of a Fund with a Current

question 49

Multiple Choice

You own 600 units of a fund with a current NAV of $14.36.Your portion of the fund distributions is $718.00 of dividends,capital gains,and interest earnings.What will be your total units now?

• A)600 units
• B)605 units
• C)550 units
• D)650 units

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project, crucial for analyzing the profitability of the investment.

Stand-Alone Cash Flows

Cash flows that a specific project is expected to generate, considered independently from the company's other cash flows.

Net Present Value

A financial metric that calculates the present value of all future cash flows associated with a project or investment, minus the initial investment cost, used to assess its profitability.

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations, showcasing its ability to cover short-term debts.