Calculate the unit price of the Masterproc Balanced Fund (“Masterproc “) using the following information extracted from its latest financial statements including the detail that it had 63 million units on issue at the end of the latest financial year:
Book Value Market Value
Details $ million $ million
Cash and deposits 25 28
Bonds 66 59
Equities 135 296
Property 100 112
Trade Creditors 45 45
Mortgage Loans 167 167
Unit price of Balance Fund = (Assets - Liabilities) / Total number of outstanding units
Total Assets= Equities+Property+Cash and Deposits
= $(296+112+28) Million
= $436 Million
Liabilities= Bonds+Trade creditors+Mortgage loans
= $(59+45+167) Millions
= $ 271 Million
Unit price of Balance Fund = ($436-$271)Million / 63 Million
= $165 Million / 63 Million
= $ 2.62
Therefore, Unit price of Masterproc balanced fund is $2.62
Note: 1. Value of Masterproc balanced fund is calculated using Market value.
2. Total number of outstanding units is 63 Million(Given in Question)
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