Question: The ABC mutual fund has $1,250,655,000 in assets $655,000 in liabilities and 30,000,000 shares outstanding.
a. What is the NAV of ABC?
b. If ABC has a front-end load of 4.25%, what is the per share purchase price?
c. If ABC sells for $42.92, is it a no-load fund?
d. If not, what is the load?
e. What is your return on investment if you buy your shares using the information in part b and sell your shares 1 year later when the mutual fund has $1,523,320,000 in assets and $120,000 in liabilities with 35,000,000 shares outstanding?
f. What is your return if ABC fund has a 5% redemption fee?