Question

Zap Fund is the mainstay of your portfolio. The investment company just announced its​ year-end distributions....

Zap Fund is the mainstay of your portfolio. The investment company just announced its​ year-end distributions. The​ long-term capital gain per share is ​$5.43 and the dividend per share is ​$0.99. Assuming the NAV increased from ​$41.91 to ​$48.69​, during the​ year, calculate your total annual return.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Total annual return = (Dividend distribution + Capital gains distribution + Change in NAV) / Beginning NAV

Dividend distribution = $0.99

Capital gains distribution = $5.43

Change in NAV = Ending NAV - Beginning NAV

Ending NAV = $48.69

Beginning NAV = $41.91

Therefore

Change in NAV = $48.69 - $41.91

= $6.78

Total annual return = ($0.99 + $5.43 + $6.78) / $41.91

Total annual return = $13.20 / $41.91

Total annual return = 0.3150

or 31.50%

Thus the Total annual return is 31.50%.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of...
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($61 per​ share) and​ long-term capital gain distributions of 38 stock mutual fund shares​ (also $61 per​ share). What are the tax consequences of​ Ronnie's stock mutual fund ownership if he is in a 28​% marginal tax​ bracket?
A mutual fund had NAV per share of $37.12 on January 1, 2016. On December 31...
A mutual fund had NAV per share of $37.12 on January 1, 2016. On December 31 of the same year, the fund's rate of return for the year was 11.0%. Income distributions were $0.1, and the fund had capital gain distributions of $3.9. Without considering taxes and transactions costs, the ending NAV is closest to Select one: a. $37.93 b. $34.52 c. $37.30 d. $47.25 e. $36.28 Assume that you purchased shares of a mutual fund at a net asset...
A closed-end fund starts the year with a net asset value of $10. By year-end, its...
A closed-end fund starts the year with a net asset value of $10. By year-end, its net asset value equals $12. At the start of the year, the fund sells at a 5% discount to the NAV. At the end of year, the fund sells at a 2% premium. The fund paid year-end distributions of income and capital gains of $1 per share. Suppose an investor invests $10,000 at the start of the year. Please answer the following questions: 1....
Assume that you have recently purchased 200 shares in an investment company. Upon examining the balance...
Assume that you have recently purchased 200 shares in an investment company. Upon examining the balance sheet, you note that the firm is reporting $200 million in assets, $70 million in liabilities, and 20 million shares outstanding. What is the net asset value (NAV) of these shares? Consider a no-load mutual fund with $350 million in assets and 14 million shares at the start of the year and with $400 million in assets and 15 million shares at the end...
At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently...
At the beginning of the year, you buy 800 shares in Muleshoe Mutual Fund, which currently has a NAV of $48.10. The fund has a front-end load of 1.8%. Over the year, the fund distributed capital gains of $1.75 per share and dividend distributions of $1.42. At the end of the year, the NAV was at $54.47 and the offer price was at $55.45. A. If you sell after one year, what is your HPR? B. Recalculate your HPR, assuming...
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.63...
A year​ ago, the Really Big Growth Fund was being quoted at an NAV of ​$21.63 and an offer price of ​$22.77. ​Today, it's being quoted at ​$23.56 ​(NAV) and ​$24.80 ​(offer). What is the holding period return on this load​ fund, given that it was purchased a year ago and that its dividends and capital gains distributions over the year have totaled ​$1.38 per​ share? Assume that none of the dividends and capital gains distributions are reinvested into the...
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV...
A closed-end fund starts the year with a net asset value of $29. By year-end, NAV equals $30.80. At the beginning of the year, the fund is selling at a 4% premium to NAV. By the end of the year, the fund is selling at a 9% discount to NAV. The fund paid year-end distributions of income and capital gains of $3.20. a. What is the rate of return to an investor in the fund during the year? (Do not...
A. You have $21,000 to invest. You could purchase shares in one mutual fund or try...
A. You have $21,000 to invest. You could purchase shares in one mutual fund or try to diversify on your own. From your investment class you learn that you need to hold at least 25 different securities in an equal weighted portfolio to achieve a reasonably well diversified portfolio. If you pay an average commission of 3% of the dollar value of the stock you buy you will have to pay ______ in commissions per stock for a total commission...
1. One year ago, Super Star Closed-End Fund had a NAV of $10.40 and was selling...
1. One year ago, Super Star Closed-End Fund had a NAV of $10.40 and was selling at an 18% discount.    Today, its NAV is $11.60 and is priced at a 4% premium. During the year, the fund paid dividends of $.40 per share and had a capital gain distribution of $.95 per share. A. Calculate Super Star's NAV-based HPR for the year. B. Calculate Super Star's market-based HPR for the year. C. Recalculate Super Star's market-based HPR for the year,...
A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV...
A closed-end fund starts the year with a net asset value of $15.00. By year-end, NAV equals $15.20. At the beginning of the year, the fund was selling at a 1% premium to NAV. By the end of the year, the fund is selling at a 5% discount from NAV. The fund paid year-end distributions of income and capital gains of $1.30. a. What is the rate of return to an investor in the fund during the year? (Do not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT