Question

the all-star basic value fund's portfolio is valued at $280 million. the fund has liabilities of $16 million, and the fund's net asset value is 18,000,000 what is the fund's number of shares outstanding?

Answer 1

The All-Star Basic Value Fund has approximately 14.67 million shares outstanding. This is calculated based on a portfolio value of $280 million, liabilities of $16 million, and a net asset value of $18 million.

To find the number of shares outstanding, you can use the formula for Net Asset Value (NAV) per share:

`\[ NAV \text{ per share} = \frac{\text{Portfolio Value} - \text{Liabilities}}{\text{Number of Shares Outstanding}} \]`

- Portfolio Value = $280 million

- Liabilities = $16 million

- NAV = $18 million

Now, plug in the values and solve for the Number of Shares Outstanding:

`\[ 18,000,000 = \frac{(280,000,000 - 16,000,000)}{\text{Number of Shares Outstanding}} \]`

Solving for the Number of Shares Outstanding:

`\[ \text{Number of Shares Outstanding} = (264,000,000)/(18,000,000) \]\[ \text{Number of Shares Outstanding} \approx 14.67 \]`

Therefore, the fund's number of shares outstanding is approximately 14.67 million.