The Asset Management Company of the mutual fund (MF) has declared a dividend of 9.98% on the units under the dividend reinvestment plan for the year…
CA Final · Advanced Financial Management · MTP · November 2024
The Asset Management Company of the mutual fund (MF) has declared a dividend of 9.98% on the units under the dividend reinvestment plan for the year ended 31st March 2021. The investors are issued additional units for the dividend at the rate of closing Net Asset Value (NAV) for the year as per the conditions of the scheme. The closing NAV was - 24.95 as on 31st March 2021. An investor Mr. X who is having 20,800 units at the year-end has made an investment in the units before the declaration of the dividend at the rate of opening NAV plus an entry load of 0.04. The NAV has appreciated by 25% during the year. Assume the face value of the unit as 10.00. Based on above Case Scenario, answer the following questions:
Suggested Answer and Working Notes:
Correct Answer: Option (B)
₹ 19.96
Topics: Portfolio Management, Mutual Fund
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