The closed fund is a closed-end investment company with a portfolio currently worth $200 million. it has liabilities of $3 million and 5 million shares outstanding. a. what is the nav of the fund? (round your answer to 2 decimal places.) nav $ b. if the fund sells for $36 per share, what is its premium or discount as a percent of nav? (input the amount as a positive value. round your answer to 2 decimal places.) the fund sells at a(n) % from nav.

a. $39.40 per share

b. 8.63%

Explanation:

a. The computation of the NAV of the fund is shown below:

= (Assets - liabilities) ÷ (Number of outstanding shares)

= ($200 million - $3 million) ÷ (5 million shares)

= ($197 million) ÷ (5 million shares)

= $39.40 per share

b. The computation of the  premium or discount as a percent of NAV is shown below:

Since the selling price is $36 but its NAV is $39.40

So, the discount would be equal to

= $39.40 - $36

= $3.40

The discount percentage equals to

= $3.40 ÷ $39.40

= 8.63%

Direct material price variance= $2,740 unfavorable

Explanation:

Giving the following information:

Standard direct material per unit= 7.3 grams

Standard cost per gram= $6.00 per gram.

Actual direct material price per gram= $6.1

Actual direct material quantity= 27,400

To calculate the direct material price variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (6 - 6.1)*27,400= $2,740 unfavorable