If a Growth Mutual Fund Has $5,234,000 in Assets, $1,234,000

question 62

Multiple Choice

If a growth mutual fund has $5,234,000 in assets, $1,234,000 in liabilities, and an NAV of $22.22 per share, what is the number of outstanding shares in the fund?

• A)55,536
• B)150,235
• C)180,018
• D)235,554
• E)291,089

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Definitions:

Weighted Average Cost of Capital (WACC)

A measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Corporate Tax Rate

The tax that corporations are required to pay on their income, which varies by country and sometimes by the level of income or industry.

Embedded Debt Cost

The total expenses, both direct and indirect, associated with issuing and carrying debt over its entire life, including interest payments and fees.

Actual Cost

The true total amount spent on a project or acquisition, including all relevant expenses and fees.