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24. A closed-end fund has total assets of $240 million and liabilities of 110,000. There are ll million shares outstanding. I
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Answer #1

Answer: Option A is correct.
NAV-(Total assets - Liabilities)/Shares outstanding
=>NAV=(240*1000000-110000)/(11*1000000)
=(240000000-110000)/11000000
=21.80818182

So, the net asset value (NAV) per share should be $21.80818182
However, the shares are selling at a discount price of $19.26
The discount percentage is (21.80818182-19.26)/19.26=13.23%

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