Question

The New American Enterprise Mutual Fund's portfolio is valued at $120,000,000. The fund has liabilities of $4,000,000, and the investment company sponsoring the fund has issued 5,800,000 shares. What is the fund's net asset value?

Answer 1

Answer:

$20 per share

Explanation:

To determine the net asset value we must first calculate the fund's total value minus liabilities:

$120,000,000 - $4,000,000 = $116,000,000

Now we divide the fund's total value by the number of shares issued:

$116,000,000 / 5,800,000 shares = $20 per share