You Purchase a Closed-End Fund at Its Initial Public Offering

question 19

Multiple Choice

You purchase a closed-end fund at its initial public offering. The initial offering price is $30 per share. The fund promoter receives a 7 percent fee from the offering, and the fund sells at a 9 percent discount to NAV the day after the offering. What is the value of your investment per share?

• A) $25.39
• B) $27.90
• C) $26.95
• D) $27.30
• E) $26.34

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Definitions:

Per-Worker Production Function

The per-worker production function depicts the relationship between the average product output per employee and the inputs used per employee, highlighting the efficiency of labor in production.

Attainable

Referring to a goal or objective that can be reached or achieved, especially through effort or strategy.

Per-Worker Production Function

A graphical representation that shows the relationship between the amount of output produced per worker and the amount of capital available per worker.

Shape

The external form or appearance of an object, defined by its outline or surface configuration.