If an investor buys shares in a closed-end investment company for $46 and the net asset value is $53, what is the discount? If the company distributes $1, the net asset value rises to $58, and the investor sells the shares for a premium of 5 percent over the net asset value, what is the percentage earned on the investment?
What will be an ideal response?
The discount is $53 - 46 = $7 (The shares initially sell for a discount of $7/53 = 13.2 percent from net asset value.)
You might also like to view...
The alternative hypothesis: the percentage of Internet users who use the Internet for shopping is greater than .40, is a ________
A) Type I error B) two-tailed test C) Type II error D) one-tailed test
The number one requirement for a group to work well together is trust
Indicate whether the statement is true or false
Which of the following describes an ERP system?
A. ERP systems enable people in different business areas to communicate. B. ERP systems have been widely adopted in large organizations to store critical knowledge used to make the decisions that drive the organization's performance. C. ERP systems provide a foundation for collaboration between departments. D. All of these.
Modern computers use memory implemented with ____
a. vacuum tubes b. resistors c. quasiconductors d. semiconductors