Difference between accounting value and market value

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1. The Stone Harbor Fund is a closed-end investment company with a portfolio currently worth $410 million. It has liabilities of $6 million and 10 million shares outstanding. If the fund sells for $38 a share, what is its premium or discount as a percent of NAV?

2. Mary is purchasing a new car that costs $47,999 four years ago. Her loan is at 1.69% annual interest for 54 months. About how much is her loan balance today if she trades her car in for a new car?.

3. Explain the difference between accounting(Book) value and market value. Which is more important to the financial manager? Why?

Reference no: EM132055002

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