PING Fund is a new closed-end that just offered its shares to the public. The fund raised $40 million. Each share sold for $60. The fee for the fund promoter was 2.5% of the initial proceeds. What was the value of your initial $20,000 purchase before the shares began trading in the market?

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The fund promoter's fee is 2.5% of $40 million, which is $1 million. Therefore, the net proceeds are $39 million. Since each share sold for $60, the number of shares is $39 million / $60 = 650,000 shares. Your $20,000 purchase would buy $20,000 / $60 = 333.33 shares. The value of these shares before trading is 333.33 shares * ($39 million / 650,000 shares) = $19,500.

PING Fund Is a New Closed-End That Just Offered Its