21-5

A mutual fund has $2 million in cash and $8 million invested in securities. It currently has 2 million shares outstanding.

21-5

a.	What is the NAV of this fund? (Round your answer to 2 decimal places. (e.g., 32.16))

NAV	$ per share

b.	Assume that some of the shareholders decide to cash in their shares of the fund. How many shares, at its current NAV, can the fund take back without resorting to a sale of assets?

Number of shares

c-1.	As a result of anticipated heavy withdrawals, it sells 24,000 shares of IBM stock currently valued at $35. Unfortunately, it receives only $32 per share. What is the net asset value after the sale? (Round your answer to 2 decimal places. (e.g., 32.16))

Net asset value

$

c-2.	What are the funds cash assets after the sale? (Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16))

Cash	$	million
Securities	$	million
securties is not 9.16