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:

W-3 Transmittal Form

A tax document used in the U.S. to summarize the total earnings, Social Security wages, Medicare wages, and withholding for all employees for a year, accompanying the W-2 forms sent to the IRS.

Correct TIN

Refers to ensuring the accuracy of a Taxpayer Identification Number, which is necessary for tax reporting and compliance purposes.

W-9

An IRS form used by individuals to provide their taxpayer identification number to entities that will pay them income during the tax year.

FUTA Taxes

Federal Unemployment Tax Act taxes that employers pay to help fund state workforce agencies.