GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
11th Edition
ISBN: 9781260201550
Author: Bodie
Publisher: MCG
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Question
Chapter 4, Problem 9PS
Summary Introduction
Adequate information:
Accrued management fees- $ 30,000
Number of share outstanding- 4 million
To compute:
Net asset value for the given fund
Introduction:
Net asset value of the fund is the total of market value of all the investments/assets owned by the fund on a particular date netted off all the liabilities to the outsiders.
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The Closed Fund is a closed-end investment company with a portfolio currently worth $170 million. It has liabilities of $6 million and 9
million shares outstanding.
Required:
a. What is the NAV of the fund?
b. If the fund sells for $20 per share, what is its premium or discount as a percent of net asset value?
The Closed Fund is a closed-end investment company with a portfolio currently worth $245 million. It has liabilities of $12 million and 17 million shares outstanding.
a. What is the NAV of the fund? (Round your answer to 2 decimal places.)
b. If the fund sells for $10 per share, what is its premium or discount as a percent of net asset value? (Input the amount as a positive value. Round your answer to 2 decimal places.)
The Closed Fund is a closed-end investment company with a portfolio currently worth $190 million. It has liabilities of $8 million and 10
million shares outstanding.
a. What is the NAV of the fund? (Round your answer to 2 decimal places.)
NAV
b. If the fund sells for $15 per share, what is its premium or discount as a percent of net asset value? (Input the amount as a positive
value. Round your answer to 2 decimal places.)
of
%
Chapter 4 Solutions
GEN COMBO LOOSELEAF INVESTMENTS; CONNECT ACCESS CARD
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