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Aleonysh [2.5K]
3 years ago
11

The Closed Fund is a closed-end investment company with a portfolio currently worth $200 million. It has liabilities of $3 milli

on and 5 million shares outstanding. a. What is the NAV of the fund?
Business
1 answer:
iragen [17]3 years ago
8 0

Answer:

$39.40

Explanation:

According to the situation, the solution is as follows

The Net asset value of the fund is

= (Current worth of portfolio - liabilities) ÷ (outstanding shares)

= ($200 million - $3 million) ÷ (5 million shares)

= $39.40

Basically we applied the above formula in order to determine the net asset value of the fund.

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