A mutual fund had year-end assets of $560,000,000 and liabilities of $26,000,000.There were 23,850,000 shares in the fund at year end.What was the mutual fund's Net Asset Value?

Question

Quizplus · Accepted Answer

To calculate the net asset value (NAV) of the mutual fund, we need to subtract the liabilities from assets and divide by the number of shares outstanding:

NAV = (Assets - Liabilities) / Shares

NAV = ($560,000,000 - $26,000,000) / 23,850,000

NAV = $534,000,000 / 23,850,000

NAV = $22.39

Therefore, the answer is B.

A Mutual Fund Had Year-End Assets of $560,000,000 and Liabilities