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To recoup the cost, the fund distributors charge investors higher annual fees than they do on Class A shares over the next eight years, after which Class B shares generally convert to Class A. Exit charges also recover the broker's commission if investors leave the fund during the first six years.
In a table showing average annual returns for 1-, 5- and 10-year periods for all share classes, it assigned an annual return of 7.26percentt for A shares over 10 years, versus 7.2percentt for B shares.
Moreover, the Finra calculator shows that the benefits of A shares over B shares in the Global Bond fund for an investment of $100,000 never exceed $1,200 — or 1.2percentt of the original investment — through a 10-year holding period.
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Using a sample of 162 twin A/B-shares issued by 81 listed firms, we find that the portfolio of B-shares, which are treated and held in large volumes, obtains a significant positive treatment effect of 2.08% relative to that of A-shares over a 3-day event window.
The stock options would have cost 23 cents a share over six years.
It plans to rebase the payment to around 14p a share over the medium term.
Some analysts are even more positive, predicting $39 a share over the next 12 months.
The stock has traded as high as $60 a share over the last 52 weeks, and as low as $35.75.
The company spent an average of $103.58 a share over the period, three times the current value of the shares, as it bought nearly 59 million shares.
Clearwire on Wednesday switched its allegiance to Dish Network, recommending that shareholders accept its bid of $4.40 a share over a rival offer from Sprint Nextel.
The company reported earnings of $1.79 billion last quarter, or 24 cents a share, compared to $2.22 billion, or 28 cents a share over the same period last year.
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