Question

A mutual fund has total assets of $55,000,000 and total liabilities of $6,000,000. There are 1,500,000 shares outstanding. Find the net asset value of the mutual fund. (Round your answer to the nearest cent.)

Answer 1

Answer:

$32.67

Explanation:

The net asset value can be calculated using the following equation:

$\text{net asset value = }\frac{Total\text{ Assets - Total Liabilities}}{Number\text{ of outstanding shares}}$

So, replacing the values, we get:

$\begin{gathered} \text{net asset value = }\frac{55,000,000-6,000,000}{1,500,000} \\ \text{net asset value = }\frac{49,000,000}{1,500,000}=\text{ \ 32.67} \end{gathered}$

Therefore, the net asset value is $32.67