A Mutual Fund Has an NAV of $10

question 84

Multiple Choice

A mutual fund has an NAV of $10.25 with 252,000 shares outstanding. What is the value of the fund's assets if it has $340,500 in liabilities?

• A)$2,844,537
• B)$2,923,500
• C)$3,055,380
• D)$3,187,019
• E)$3,267,337

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Definitions:

DuPont Formula

A formula that breaks down Return on Equity (ROE) into three components: profit margin, asset turnover, and financial leverage, to analyze a company's financial performance.

Profit Margin

Profit margin is a financial metric showing the percentage of revenue that remains as profit after all operating expenses are deducted from sales.

Investment Turnover

A ratio that measures the efficiency of a company’s use of its assets in generating sales or revenue; the ratio of net sales to average total assets.

Transfer Prices

Prices charged for the selling of goods and services between subsidiaries or divisions within the same company.