The Latest Trend Fund has $2,648,900 in assets, and $1,878,400 in liabilities. How many shares are outstanding if the NAV is $10.07?

Question

Quizplus · Accepted Answer

The Net Asset Value (NAV) is calculated as:
NAV = (Assets - Liabilities) / Number of outstanding shares

We can rearrange this equation to solve for the number of outstanding shares:
Number of outstanding shares = (Assets - Liabilities) / NAV

Plugging in the numbers from the problem, we get:

Number of outstanding shares = (2,648,900 - 1,878,400) / 10.07
Number of outstanding shares = 77,086.41

Rounding this to the nearest whole number, we get:

Number of outstanding shares = 76,514

Therefore, the best choice is B.

The Latest Trend Fund Has $2,648,900 in Assets, and $1,878,400