Question

Nezzie invests in 300 shares of stock in the fund shown below. Name of Fund NAV Offer Price LKIT Mid-Cap $16. 58 $16. 99 Nezzie plans to sell all of her shares when she can profit $5,000. What must the net asset value be in order for Nezzie to sell? a. $16. 67 b. $33. 25 c. $33. 57 d. $33. 66.

Answer 1

The correct amount of net asset value is $33. 66. Net asset value is termed as the value of the asset after the evaluation of the company's profit and evaluating the paid-off debt of the firm.  

Computation of the total net value:

$\begin{aligned}\text{The Total Net Value}&=(\text{ Number of shares} \times \text{Offer price}) + \text{profit}\\\text{The Total Net Value}&= 300 \:\rm shares \times \ 16.99 + \ 5000\\\text{The Total Net Value}&=\ 10,097\end{aligned}$

The computation of the net asset value is:

$\begin{aligned} \text{The Net Asset Value}&=\dfrac{\text{ Total Net Value}}{\text{Total Outstanding Shares}} \\\text{The Net Asset Value}&= \frac{\ 10097}{300\:\rm shares} \\ \text{The Net Asset Value}&= \ 33.66\end{aligned}$

Therefore, the correct option is D.

To know more about the calculation of the net asset value, refer to the link below:

brainly.com/question/2718055