9 The Delphi closedend fund owns 1200 million worth of the c

9) The Delphi closed-end fund owns $1,200 million worth of the common stocks of various companies. Its current price of $37.85 per share is 92% of its NAV. If the fund has 28 million shares outstanding, how much are its liabilities?

10) The Millennium open-end fund owns $1,792 million worth of the common stocks of various companies. Its liabilities are $140 million. Its offer price is $30.52 per share. If the fund has 59 million shares outstanding, calculate the fund’s dollar front-end load.

Solution

9)

NAV = 37.85 = 0.92 *NAV

37.85 / 0.92 = NAV

41.1413 = NAV

NAV = ( Assets - liabilities ) / Number of shares outstanding

41.1413 = ( 1,200 - liabilties ) / 28

1,151.956 = 1,200 - liabilties

Liabilities = 1200 - 1,151.956

Liabilities = 48.044 million

10)

NAV = ( Assets - liabilities ) / Number of shares outstanding

NAV = ( 1,792 - 140) / 59

NAV = 28

Dollar front end load = 30.52 - 28

Dollar front end load = 2.52