What percentage return do you earn on the investment

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A) A closed end investment company is currently selling $10 and its net asset value is $10.63.you decide to purchase 100 shares. During the year the company distributes $0.75 in dividend. At the end of the year, you sell the shares of $12.03.at the time of the sale, net asset value is $13.52 what percentage return do you earn on the investment? What role does the net asset value play in determining the percentage return?

B) A close end investment company is currently selling for $10 and you purchase 100 shares. During the year the company distributes $ 0.75 in dividends? At the end of the years, you sell the shares for $12.03 .the commission on each transaction is $50.what percentage return do you earn on the investment?

C) You buy 100 shares in a mutual fund at its net asset value of $10.the fund charges a load fee of 5.5%.during the year, the mutual fund distributes $0.75 in dividends. You redeem the shares for their net asset value of $12.03 and the fund does not charge an exit fee. What percentage return do you earn on the investment?

D) You buy 100 shares in a no load mutual fund at its net asset value of $10 . During the year the mutual fund distributes $0.75 in dividend. You redeem the shares for their net asset value of $12.03 but the fund charges a 5.5 % exist fee. What percentage return do you earn on the investment?

E) you buy 100 shares in a no load mutual fund at its net asset value of $10.during the year , the mutual fund distributes $0.75 in dividends. You redeem the shares for their net asset value of $12.03 and the fund does not charge an exit fee. What percentage return do you earn on the investment?

F) Compare your answers to parts (a) through (e). What are the implications of the comparisons? How would each of the following affect the percentage returns?

- You buy and sell stocks through an online broker instead of a full-service broker.

- You are in the 25% federal income tax bracket.

- The distributions are classified as long-term instead of short-term term.

- The purchases and sales occur in your retirement account (e.g., IRA).

Reference no: EM13260624

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