Use the following balance sheet to answer items #1-5:

Boomer Mutual Fund

Balance Sheet

December 1, 20XX

Assets Liabilities

Cash and Equivalents $15,000 Accounts Payable $2,000

Investment Securities $822,000 Equity

TOTAL ASSETS $837,000 Common stock $0.00

(zero-par, 10,000 shares)

Total net assets $835,000

1. What is the net asset value per share (NAV) of the BoomerBear Fund?

2. Suppose Boomers investments increase in value by 1.5%. What is the new NAV?

3. Suppose I want to invest $10,000 into the Boomer Fund at this new NAV. How many shares will I buy?

4. Same as #3, but suppose Boomer Fund charges a 3% front load on the purchase of new shares.

Now, forget items 2-4. Suppose that Boomer Fund is a closed-end investment company.

5. If you wanted to buy shares of the Boomer Fund, how would you go about doing so?

6. If Boomer is trading in the market at $86.14 per share. What is Boomers premium (or discount)?