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IFSE Institute Investments & Banking CIFC Question # 25 Topic 3 Discussion

CIFC Exam Topic 3 Question 25 Discussion:
Question #: 25
Topic #: 3

Anthony purchased 500 units of XYZ Fund at a price of $12.00 per unit. Near the end of the year, the mutual fund made a distribution of $1.50 per unit. The net asset value per unit (NAVPU) immediately before the distribution was $16.50. Anthony immediately reinvested his distribution at the new NAVPU. How many new units did Anthony purchase when his distribution was reinvested?


A.

45.50


B.

50.00


C.

52.60


D.

55.40


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