consider a mutual fund with $340 million in assets at the start of the year and 10 million shares outstanding. the fund invests in a portfolio of stocks that provides dividend income at the end of the year of $2.4 million. the stocks included in the fund's portfolio increase in price by 9%, but no securities are sold and there are no capital gains distributions. the fund charges 12b-1 fees of 1.00%, which are deducted from portfolio assets at year-end.