Question

In: Finance

A closed-end fund has total assets of $450 million and liabilities of $250,000. Currently, 25 million...

A closed-end fund has total assets of $450 million and liabilities of $250,000. Currently, 25 million shares are outstanding. What is the NAV of the fund? If the shares currently sell for $18.15, what is the premium or discount on the fund? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the NAV answer to 2 decimal places. Enter the premium or discount as a percent rounded to 2 decimal places.)


Net asset value
Premium(discount)		%

Expert Solution

Net Asset Value

Net Asset Value = (Total Assets - Liabilities) / Number of shars outstanding

Net Asset Value = ($450,000,000 - $250,000) / 25,000,000 Shares

Net Asset Value = $449,750,000 / 25,000,000 Shares

Net Asset Value = $17.99

Premium Percentage

Premium Percentage = [($18.15 - $17.99) / $17.99] x 100

Premium Percentage = [$0.16 / $17.99] x 100

Premium Percentage = 0.89% Premium

Net Asset Value = (Total Assets - Liabilities) / Number of shars outstanding

Net Asset Value = ($450,000,000 - $250,000) / 25,000,000 Shares

Net Asset Value = $449,750,000 / 25,000,000 Shares

Net Asset Value = $17.99

Premium Percentage

Premium Percentage = [($18.15 - $17.99) / $17.99] x 100

Premium Percentage = [$0.16 / $17.99] x 100

Premium Percentage = 0.89% Premium

jeff jeffy answered 1 year ago

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