Question

The composition of the Fingroup Fund portfolio is as follows:

Stock Shares Price
A 200,000 $ 34
B 268,000 56
C 416,000 36
D 520,000 45
The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $56,000. There are 4.5 million shares outstanding.
What is the net asset value of the fund? (Round your answer to 2 decimal places.)

Answer 1

$13.36

Step-by-step explanation:

The computation of the net asset value of the fund is as follows:

Total value

= 200,000 shares × $34 + 268,000 shares × $56 + 416,000 shares × $36 + 520,000 shares × $45

= $6,800,000 + $15,008,000 + $14,976,000 + $23,400,000

= $60,184,000

Now the net asset value is

= ($60,184,000 - $56,000) ÷ (4,500,000)

= $13.36