Problem $22-9($LG $22-7)$

An investment fund has $$2$ million in cash and $$6$ million invested in securities$.$ It currently has $1$ million shares outstanding.

a$.$ What is the NAV of this fund?

Note: Round your answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16)$

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?

c$-1.$ As a result of anticipated heavy withdrawals, it sells $25,000$ shares of IBM stock currently valued at $$36.$ Unfortunately, it recelves only $$34$ per share. What is the net asset value after the sale?

Note: Round your answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16)$

c$-2.$ What are the fund's cash assets after the sale?

Note: Enter your answers in millions rounded to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16)$

d$-1.$ Assume after the sale of IBM shares, $260,000$ shares are sold back to the fund. What is the current NaV?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places. $($e$.$g$.,32\mathrm{.}16)$

d$-2.$ Is there a need to sell more stocks to meet this redemption?