Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Our platform connects you with professionals ready to provide precise answers to all your questions in various areas of expertise. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $300 million. It has liabilities of $5 million and 9 million shares outstanding. If the fund sells for $30 a share, what is its premium or discount as a percent of NAV

Sagot :

The answer is 8.48% discount.

Given,  portfolio's current worth = $300 million

liabilities = $5 million

shares outstanding = 9 million

Share Price = $30 per share

Value of NAV = (Value of Portfolio - Liabilities) / shares outstanding

Now, substituting the value of the given information in the above mentioned formula we get,

NAV(in millions $) = (300 - 5) / 9

                             = $32.78 millions

Since, Discount = [tex]1 - \frac{share prive}{NAV}[/tex]

                          = [tex]1 - \frac{30}{32.78}[/tex]

                          = 8.48%

Hence, its discount as a percent of NAV is 8.48%.

Learn more about Shares:

https://brainly.com/question/17190441

#SPJ4

We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.