1. Explain how shares in closed end funds are valued, and how they can trade for either a discount or premium to net asset value. describe a situation where you think a fund would trade at a discount, and describe another situation where you think a fund would trade at a premium.
2. What are some considerations that firms take into account when they set their dividends policies? why do firms think that investors want smooth and consistent dividends, and how does that perceived expectation impact the dividends that firms pay? what other ways might a company try to return value to shareholders if not through dividend payments?