A Mutual Fund Had Year-End Assets of $327,000,000 and Liabilities

question 20

Multiple Choice

A mutual fund had year-end assets of $327,000,000 and liabilities of $46,000,000. If the fund NAV was $30.48, how many shares must have been held in the fund?

• A) 11,354,751
• B) 8,412,642
• C) 10,165,476
• D) 9,165,414
• E) 9,219,160

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and profit generation.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core operations.