Diversified Portfolios had year-end assets of $279,000,000 and liabilities of $43,000,000. If Diversified's NAV was $42.13, how many shares must have been held in the fund?

Question

Quizplus · Accepted Answer

The Net Asset Value (NAV) is calculated as (Assets - Liabilities) / Number of Shares. Here, the assets are $279,000,000 and liabilities are $43,000,000, so the net assets are $236,000,000. Given the NAV is $42.13, the number of shares is $236,000,000 / $42.13 = 5,601,709.

Diversified Portfolios Had Year-End Assets of $279,000,000 and Liabilities of $43,000,000