A mutual fund had year-end assets of $700,000,000 and liabilities of $7,000,000. There were 40,150,000 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) is calculated by subtracting the fund's liabilities from its assets and then dividing by the number of shares. So, NAV = ($700,000,000 - $7,000,000) / 40,150,000 = $693,000,000 / 40,150,000 = $17.26.

A Mutual Fund Had Year-End Assets of $700,000,000 and Liabilities