Question

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

Answer 1

Answer:

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.