Question

On September 22, 2021, the market value of the investments contained in the Martindale Balanced Fund, a mutual fund, was $39,400,000, Liabilities for the

fund were $3,940,000.
If the fund had 1,380,000 shares outstanding, calculate the net asset value per share. Round your answer to the nearest cent.

Answer 1

The given information is,

→ x = $39,400,000

→ y = $3,940,000

→ z = 1,380,000

Formula we use is,

→ (x - y)/z

Now the net asset value per share is,

→ (x - y)/z

→ (39400000 - 3940000)/1380000

→ 35460000/1380000

→ 25.6956521739

→ ≈ $25.70

Hence, the net asset value is $25.70.

Answer 2

$25.70 (nearest cent)

Explanation:

Given:

• Market value = $39,400,000
• Liabilities = $3,940,000
• Outstanding shares = 1,380,000

`\begin{aligned} \textsf{Net Asset Value}_{\textsf{(Per Share)}} & =\frac{\textsf{Fund Assets}-\textsf{Fund Liabilities}}{\textsf{Total number of Outstanding Shares}}\\\\\implies \textsf{Net Asset Value}_{\textsf{(Per Share)}} & = (\$39,400,000-\$3,940,000)/(\$1,380,000)\\\\& = (\$35,460,000)/(\$1,380,000)\\\\& = \$25.69565217...\\\\\end{aligned}`

Therefore, the Net Asset Value (NAV) per share is $25.70 (nearest cent).