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Fofino [41]
3 years ago
15

Investors in closed-end funds who wish to liquidate their positions must a.sell their shares to other investors. b.sell their sh

ares to the issuer at a discount to Net Asset Value. c.sell their shares to the issuer at a premium to Net Asset Value. d.sell their shares to the issuer for Net Asset Value. e.hold their shares to maturity
Business
1 answer:
Molodets [167]3 years ago
6 0

Answer:

The correct answer is letter "A": sell their shares to other investors.

Explanation:

Closed-end funds are pools of assets that at the beginning raise a fixed amount of income thanks to an <em>Initial Public Offering</em> (IPO) and later on trades in a public stock exchange. Close-end funds are said to provide higher returns than open-end funds. <em>When investors have a position with a closed-end fund, to exit it the number of shares held must be sold to another investor.</em>

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A company recently issued 9% preferred stock. The preferred stock sold for $40 a share with a par of $20. The cost of issuing th
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Answer:

The company's cost of preferred stock is 5.1%

Explanation:

In order to find the cost  of the preferred stock we will need to divide the dividend the company pays on it by the net amount that the company is receiving for selling it.

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Now we need to find the net amount the company receives for selling the preferred stock.

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1.8/35=0.051

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