Question

A mutual fund has total assets of $39,333,444 and liabilities of $6,753,789. If there are 11,521,000 shares outstanding,

what is the net asset value of the fund?

$3.02
$3.85
$2.83
$2.16

Answer 1

Step-by-step explanation:

The net asset value of the mutual fund can be calculated by subtracting the total liabilities from the total assets and then dividing the result by the number of shares outstanding.

Total assets = $39,333,444

Total liabilities = $6,753,789

Number of shares outstanding = 11,521,000

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

NAV = ($39,333,444 - $6,753,789) / 11,521,000

NAV = $32,579,655 / 11,521,000

NAV = $2.83

Therefore, the net asset value of the mutual fund is $2.83.