The investments in the Already Been Counted Fund have a current market value of $600 million. The fund also has liabilities that total $40 million. If this mutual fund has 25 million shares, what is the net asset value per share?

Question

Quizplus · Accepted Answer

The net asset value (NAV) per share is calculated by subtracting the fund's liabilities from its assets to get the net assets, and then dividing by the number of shares. Here, the net assets are $600 million - $40 million = $560 million. Dividing by 25 million shares gives a NAV per share of $22.40.

The Investments in the Already Been Counted Fund Have a Current