If a growth mutual fund has $5,234,000 in assets, $1,234,000 in liabilities, and an NAV of $22.22 per share, what is the number of outstanding shares in the fund?

Question

Quizplus · Accepted Answer

The net assets of the fund can be calculated as:
Net Assets = Assets - Liabilities
Net Assets = $5,234,000 - $1,234,000
Net Assets = $4,000,000

The number of outstanding shares can be calculated using the formula:
Outstanding Shares = Net Assets / NAV

Outstanding Shares = $4,000,000 / $22.22
Outstanding Shares = 180,018.001
Since the number of shares must be a whole number, the answer is 180,018.

If a Growth Mutual Fund Has $5,234,000 in Assets, $1,234,000