A Closed-End Fund Has Total Assets of $379 Million and Liabilities

question 79

Multiple Choice

A closed-end fund has total assets of $379 million and liabilities of $640,000. There are 36 million shares outstanding. What is the premium or discount if the shares are currently selling for $9.80 each?

• A) 7.46 percent discount
• B) 6.76 percent discount
• C) 6.94 percent discount
• D) 6.80 percent premium
• E) 7.46 percent premium

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Definitions:

Debits Equals Credits

A fundamental principle of accounting stating that for every transaction, the total debits must equal the total credits in a double-entry bookkeeping system.

Posting Reference Notation

A symbol, number, or letter added to ledger entries to identify the source document or journal where the transaction was first recorded.

Ledger

A comprehensive collection of accounts that records all financial transactions of a business, organized to show the financial status and activities.

Account Number

An account number is a unique identifier assigned to an account held by a bank, financial institution, or service provider to differentiate it from other accounts.