Question

city street fund has a portfolio of $200 million and liabilities of $10 million. required: if there are 25 million shares are outstanding, what is net asset value?

Answer 1

The net asset value (NAV) per share of the City Street Fund is $7.60, calculated by subtracting the fund's liabilities from its assets and dividing by the number of outstanding shares.

Step-by-step explanation:

To calculate the net asset value (NAV) of the City Street Fund, you have to subtract the fund's liabilities from its total assets and then divide the result by the number of shares outstanding. In this case, the total assets are $200 million, and the liabilities are $10 million. With 25 million shares outstanding, you can use the following formula to determine the NAV:

NAV = (Total Assets - Liabilities) / Number of Shares Outstanding

NAV = ($200 million - $10 million) / 25 million shares

NAV = $190 million / 25 million shares

NAV = $7.60 per share

Therefore, the net asset value per share of the City Street Fund is $7.60.