Question

Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note that the firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding. What is the net asset value (NAV) of these shares?

Answer 1

Answer: Net Asset Value = 1950

Explanation:

Assets = $225 million

Liabilities = $30 million

Shares outstanding = 10 million

We can compute the Net Asset Value, using the following formula:

$NAV\ per\ share= \frac{Assets - Liabilities }{Outstanding\ Shares}$

$NAV\ per\ share = \frac{225 - 30}{10}$

NAV per share = 19.5

Therefore, the NAV of 100 share is 1950