Suppose that the current value of all of a mutual fund's holdings is determined to be $750 million.The fund's liabilities are $125 million and it grew at 20% from last year.It currently has 45 million shares outstanding.What is the fund's NAV?
A)$12.00 per share
B)$13.89 per share
C)$14.40 per share
D)$16.80 per share

Question

Quizplus · Accepted Answer

To calculate the NAV, we need to subtract the liabilities from the current value of the holdings, which gives us $625 million.

Next, we need to divide this by the number of shares outstanding, which is 45 million:

NAV = $625 million / 45 million = $13.89 per share

Therefore, the correct answer is B, $13.89 per share.

Suppose That the Current Value of All of a Mutual