Cognana fund has 9.8 million shares outstanding. The fund’s portfolio is now valued at $500 million, and the fund owes $16 million to the fund advisors and $8 million against rent and wages. How would you calculate the net asset value of the fund?

Cognana fund has 9.8 million shares outstanding. The fund’s portfolio is now valued at $500 million, and the fund owes $16 million to the fund advisors and $8 million against rent and wages. How would you calculate the net asset value of the fund?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 7FPE

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Net asset value of a fund is popularly called as NAV. It is the per unit market value of all the different financial securities that are held by the concerned fund.

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