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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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Answer:

credit to Work in Process of $59,000.

Explanation:

Based on the information given the appropriate l journal entries to record these transactions would include a: CREDIT TO WORK IN PROCESS OF $59,000

Dr Finished goods $59,000

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6 0
2 years ago
Other things equal, an increase in productivity will Multiple Choice reduce aggregate supply and increase real output. reduce bo
leva [86]

Answer:

increase both aggregate supply and real output.

Explanation:

A rise in productivity makes it possible for each and every firm to rise the greater amount of output. due to this  aggregate supply will rise which will lead to increase in the real output.

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Therefore the above represent the answer  

6 0
3 years ago
Why would the US government sell government securities to private individuals and organizations?
shusha [124]
D to increase the money supply and lower the inflation rate
4 0
3 years ago
With a framework in place, controls and risk become more measurable. The ability to measure the enterprise against a set of stan
weeeeeb [17]

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True

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When a company as a framework to measure risk against, it can properly assess risk in different periods of time, depending of the risk score obtained within the framework.

This helps regulators because they can access an accurate primary information from the company itself (later on, they should probably compare that information against their own standards in order to prevent bias), and it also helps the company because it can see where it stands in terms of risk, which reduces uncertainty.

7 0
3 years ago
Only variable costs can be differential costs. Do you agree? Explain.
Nostrana [21]

I do not agree with the given statement that is "Only variable costs can be differential costs.".

The difference in the costs of two alternative decisions is referred to as differential cost.

When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.

Variable costs in cost accounting are costs that vary according to how much a company produces.

Variable costs are typically proportional to output.

As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.

Hence, I disagree with the statement given in the question.

Learn more about variable cost:

brainly.com/question/9212451

#SPJ4

5 0
1 year ago
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