The Sage Mutual Fund's portfolio is valued at $120 million.The fund has liabilities of $10 million, and the investment company sponsoring the fund has issued 5,000,000 shares.What is the fund's net asset value per share?

Question

Quizplus · Accepted Answer

The net asset value (NAV) per share is calculated by subtracting liabilities from the total portfolio value and then dividing by the number of shares. NAV = ($120 million - $10 million) / 5,000,000 shares = $110 million / 5,000,000 shares = $22.00 per share.

The Sage Mutual Fund's Portfolio Is Valued at $120 Million