Question

# The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 380,000 \$...

The composition of the Fingroup Fund portfolio is as follows:

 Stock Shares Price A 380,000 \$ 40 B 480,000 45 C 580,000 10 D 780,000 15

The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals \$35,000. There are 4 million shares outstanding. What is the net asset value of the fund? (Round your answer to 2 decimal places.)

Calculation of Fund assets:

 Stock Shares (1) Price (2) Stock Value (3) (1*2) A 380,000 40 152,00,000 B 480,000 45 216,00,000 C 580,000 10 5800,000 D 780,000 15 117,00,000 Stock value 543,00,000

Fund assets/Stock value = 543,00,000

Fund liabilities/Management fee = 35,000

No.of shares Outstanding = 40,00,000 (4Million = 4*10L= 40L)

Net asset value of the fund = Fund assets - Fund liabilities/No.of shares outstanding

= 543,00,000-35,000/40,00,000

= 542,65,000/40,00,000

= 13.56

Net asset value = 13.56

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