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The European Growth Fund has $820 million in assets and $76,000 in liabilities. There are 30.5...

The European Growth Fund has $820 million in assets and $76,000 in liabilities. There are 30.5 million shares outstanding. The charge a 4.4% front-end load. What is the market price of the fund?

a. 26.47

b. 29.74

c. 27.54

d.28.12

e. 26.08

Solutions

Expert Solution

NAV = Asset - liabilities
=$820000000-76000
=$819924000
NAV per share = $819924000/30500000
=26.8827
Market price = NAV /(1- Front end)
=26.8827/(1-0.044)
=$28.12
Correct Option :d.28.12

jeff jeffy answered 3 years ago
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