he composition of the Fingroup Fund portfolio is as
follows:
| Stock | Shares | Price | ||
| A | 260,000 | $ | 40 | |
| B | 360,000 | 45 | ||
| C | 460,000 | 20 | ||
| D | 660,000 | 25 | ||
The fund has not borrowed any funds, but its accrued management fee
with the portfolio manager currently totals $45,000. There are 4
million shares outstanding. What is the net asset value of the
fund? (Round your answer to 2 decimal places.)
Calculation of Net Asset Value of the fund.|
Net Asset Value equal to the market value of assets minus the
market value of liabilities lets calculates the value of shares to
get the market vaue of assets.
Stock A= 260000*$40= $10400000
Stock B= 360000*$45= $16200000
Stock C= $9,200000
Stock D= $16500000
Total Market Value of Shares= $52300000
The accrued management fee will be considered under the Management
fee for portfolio service which is payable and it will be deducted
from the market value
Net Asset Value= Market Value of Securities-Market Value of
Liabilities/No. of shares outstanding
= $52300000-$45000/4000000 shares
= $52255000/4000000 shares
=$13.06
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