Suppose Under Mutual Fund Owns Only the Three Stocks Shown

question 88

Multiple Choice

Suppose Under Mutual Fund owns only the three stocks shown below with no liabilities. The fund originated by selling $500,000 of stock at $50.00 per share. What is its current NAV?

• A) $12.53
• B) $15.29
• C) $152.90
• D) $125.30
• E) $150.50

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Definitions:

Reinstatement

The process of restoring a previous condition or position, such as reinstating a lapsed insurance policy or an employee's job position.

Receipt of Cash

The process of receiving cash as a form of payment, often recorded during accounting transactions.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its credit customers, calculated as sales divided by the average accounts receivable.

Days' Sales in Receivables

A financial metric that measures how quickly a company collects on sales made on credit, indicating the average number of days it takes to convert receivables into cash.