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aliya0001 [1]
3 years ago
14

The Closed Fund is a closed-end investment company with a portfolio currently worth $260 million. It has liabilities of $2 milli

on and 6 million shares outstanding. a. What is the NAV of the fund? (Round your answer to 2 decimal places.) b. If the fund sells for $40 per share, what is its premium or discount as a percent of NAV? (Input the amount as a positive value. Round your answer to 2 decimal places.)
Business
1 answer:
attashe74 [19]3 years ago
4 0

Answer and Explanation:

The computation is given below:

NAV = (Total value - Liabilities) ÷ Number of shares outstanding

= ($260M - $2M) ÷ 6M

= $258M ÷ 6M

= $43

b. The premium or discount is  

= (Market price - NAV) ÷ NAV

= ($40 - $43) ÷ $43

= -$3 ÷ $43

= -0.06976 or -6.98%

So here the fund should be sold at 6.98% discount

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What is the expected constant-growth rate of dividends for a stock currently priced at $50, that just paid a dividend of $4, and
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Answer:

8.9

Explanation:

according to the constant dividend growth model

price = d1 / (r - g)

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6 0
3 years ago
Your friend Scotty informs you that in 2019 he received a tax-free reimbursement of some medical expenses he paid in 2018. Which
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Answer:

c.Scotty did not itemize deductions in 2018

Explanation:

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Therefore based on the Scotty scenario the statements that best explains why Scotty is not required to report the reimbursement in gross income is :Scotty did not itemize deductions in 2018

3 0
3 years ago
The order of presentation of activities on the statement of cash flows is
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The answer is D. Operating, investing, and financing
3 0
3 years ago
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Lauren is the owner of a bakery that earns 0 (zero) economic profit. Last year, her total revenue was $145,000, her rent was $12
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Answer: The correct answer is " a. $92,000.".

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So her total explicit cost were: $12 000 + $65 000 + $15 000 = $92 000.

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3 years ago
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