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A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million...

A mutual fund has total assets worth of $50 million. Suppose the fund owes $3 million to its investment advisers and owes another $2 million for rent, wages due, and miscellaneous expenses. The fund has 15 million shares. What is the NAV per share of this fund?

3.333333333

3

3.2

3.133333333

Solutions

Expert Solution

B.$3

working;

NAV = (fund assets - fund liabilities) / number of shares

=> ($50 million - $3 million - $2 million) / 15 million shares

=>$3 per share.

jeff jeffy answered 2 years ago
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