A mutual fund had year-end assets of $250,000,000 and liabilities of $4,000,000.There were 3,750,000 shares in the fund at year end.What was the mutual fund's net asset value?

Question

Quizplus · Accepted Answer

The net asset value (NAV) of a mutual fund is calculated by subtracting the liabilities from the assets and then dividing by the number of shares outstanding.

NAV = (Assets - Liabilities) / Number of shares

In this case, the assets are $250,000,000 and the liabilities are $4,000,000, so:

NAV = ($250,000,000 - $4,000,000) / 3,750,000 
NAV = $246,000,000 / 3,750,000 
NAV = $65.60

Therefore, the correct answer is D) $65.60.

A Mutual Fund Had Year-End Assets of $250,000,000 and Liabilities