A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Within the first year In the second year In the third year In the fourth year In the fifth year In the sixth year After the sixth year Deferred sales charge 6% 5% 4% 3% 2% 1% 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)? Calculate the amount that Max will receive:
A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for $15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell 3,000 shares on November 30, 2021, when the share price was at $9.55/share. His investment broker counselled him not to sell as the fund was a back-end loaded fund. Year funds are redeemed/sold Within the first year In the second year In the third year In the fourth year In the fifth year In the sixth year After the sixth year Deferred sales charge 6% 5% 4% 3% 2% 1% 0% a) What is the amount that Max will receive for the sale of these shares (ignore income taxes)? Calculate the amount that Max will receive:
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A year and half ago, Max purchased 5,000 shares in a mutual fund called Epic Inc. for
$15.75/share. Due to COVID-19, the stock was an epic failure and Max decided to sell
3,000 shares on November 30, 2021, when the share price was at $9.55/share. His
investment broker counselled him not to sell as the fund was a back-end loaded fund.
Year funds are redeemed/sold
Within the first year
In the second year
In the third year
In the fourth year
In the fifth year
In the sixth year
After the sixth year
Deferred sales charge
6%
5%
4%
3%
2%
1%
0%
a) What is the amount that Max will receive for the sale of these shares (ignore
income taxes)?
Calculate the amount that Max will receive:
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