The investments in the Alamo Basics Contingency Fund have a current market value of $800 million. The fund also has liabilities that total $60 million. If this mutual fund has 20 million shares, what is the net asset value per share?

Question

Quizplus · Accepted Answer

The net asset value per share is calculated by dividing the net assets of the fund by the number of shares outstanding. The net assets of the fund are the current market value of the investments minus the liabilities. In this case, the net assets are $800 million - $60 million = $740 million. The net asset value per share is $740 million / 20 million shares = $37.00.

The Investments in the Alamo Basics Contingency Fund Have a Current