The Capitalist Mutual Fund's portfolio is valued at $45 million. The fund has liabilities of $3 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value?
A. $100

B. $26.25

C. $52.50

D. $3.75

Question

The Capitalist Mutual Fund's portfolio is valued at $45 million. The fund has liabilities of $3 million, and the investment company sponsoring the fund has issued 1,600,000 shares. What is the fund's net asset value?
A. $100
	
B. $26.25
	
C. $52.50
	
D. $3.75

tester97 · Answer

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aum · Answer

Net Asset Value = Asset Value - Liabilities = $45 million - $3 million = $42 million.

Net Asset Value Per Share = Net Asset Value / Total Number of Shares Issued 
= $42 million / 1,600,000 = 42 million / 1.6 million = 42/1.6 = $26.25