Question

A mutual fund has a market value of $40,000,000 and 4,000,000 outstanding shares. What is the value per share?

1


10


100


1,000

Answer 1

Option B. $10.00

Explanation:

Market value of a mutual fund = $40,000,000

Total outstanding shares = 4,000,000

To find out per share value we use this formula

`\frac{\text{Market value of the shares}}{\text{total number of shares}}`

`(40,000,000)/(4,000,000)` = $10/share

The value of per share is $10.00