The offering price includes a 5% front-end load, or sales commission so that every dollar spent results in just $0.95 going toward the purchase of shares. Therefore:
Offering Price = NAV/1-load = 11.20/1-0.05 = $11.79
What are sales commissions?
A type of variable-pay compensation for goods or services sold is commissions. Salespeople are frequently encouraged and rewarded with commissions. Additionally, commissions can be created to promote particular sales habits. For instance, commissions may be decreased while providing significant discounts. A sales associate or sales representative may pay a portion of a sale's value in sales commission. Your cost of items sold, credit card transaction fees, shipping expenses, and any sales commissions you may pay to sales employees are all variable costs. An employee who receives a commission receives a share of the proceeds from the transaction. For instance, if a worker sells a couch for $500 and gets a 10% commission on every sale, they will be paid $50 for that sale.
To learn more about sales commissions click on the given link:
https://brainly.com/question/957886
#SPJ4
