What was the average cost of her shares

Assignment Help Accounting Basics

Reference no: EM131455109

Problem - Investments

Amber invested $250 in shares of a mutual fund (TSN) every month starting Jan. 1, 2016 until Dec. 31, 2016. Below is the list of transactions on her account. Assume that dividends and capital gains are not reinvested and she receives the income directly. Use the table to answer the questions below.

Date	NAV	Dividends Paid Out	Capital Gains Realized
01-01-2016	$12
02-01-2016	$16
03-01-2016	$11
04-01-2016	$8
04-30-2016		$ .55/share	$ 1/share
05-01-2016	$10
06-01-2016	$15
07-01-2016	$16
08-01-2016	$19
08-31-2016		$ .61/share	$1.25/share
09-01-2016	$17
10-01-2016	$16
11-01-2016	$11
12-01-2016	$9
12-31-2016		$ .44/share	$1.06/share

a. How many shares did she buy in total?

b. What was the average cost of her shares at the end of 2016?

c. If the NAV is $13 on Dec. 31, 2016, what is her total holding period (shareholder) return?

d. If she sells 200 shares on December 31, 2016 for $13/share (after receiving the final dividend and capital gain payments), how much will she owe in taxes on her capital gains for the year? Assume a 33% marginal tax rate and ignore dividends.

Reference no: EM131455109

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