Asked by Brandon Watson on Jun 29, 2024
Verified
A mutual fund had year-end assets of $437,000,000 and liabilities of $37,000,000. If the fund NAV was $60.12, how many shares must have been held in the fund?
A) 6,653,360
B) 8,412,642
C) 10,165,476
D) 9,165,414
E) 9,219,160
Net Asset Value
The total value of an entity's assets minus the total value of its liabilities, often used in evaluating investment funds.
Year-End Assets
The total value of all assets held by an individual, company, or institution at the conclusion of a fiscal year.
Liabilities
Financial obligations or debts a company owes to others, which must be settled over time through the transfer of economic benefits.
- Compute the Net Asset Value (NAV) of a mutual fund using provided assets and liabilities.
- Calculate the number of shares in a mutual fund using its net asset value and total net assets.
Verified Answer
NS
Nicholas SaucedoJul 03, 2024
Final Answer :
A
Explanation :
To find the number of shares, divide the net assets (assets minus liabilities) by the NAV. Net assets = $437,000,000 - $37,000,000 = $400,000,000. Shares = $400,000,000 / $60.12 ≈ 6,653,360.
Learning Objectives
- Compute the Net Asset Value (NAV) of a mutual fund using provided assets and liabilities.
- Calculate the number of shares in a mutual fund using its net asset value and total net assets.