Ask Question
17 June, 06:39

Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and 50 million shares outstanding. What is the net asset value (NAV) of these shares? A. $12 B. $9 C. $10 D. $1

+2
Answers (1)
  1. 17 June, 08:35
    0
    B. $9

    Explanation:

    Assets value = $500 million

    Liability value = $50 million

    Use following formula to calculate NAV

    Net Assets value = Assets value - Liability value

    Net Assets value = $500 million - 50 million

    Net Assets value = $450 million

    Net Assets value = $450 million / 50 million

    Net Assets value = $9 per share

    So, the correct option is B. $9.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabilities, and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers