Question

Assume that you have recently purchased 100 shares in an investment company. Upon examining the balance sheet, you note the firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding. What is the Net Asset Value (NAV) of these shares?

Answer 1

Net Asset Value (NAV) = 1,950

Step-by-step explanation:

Net Asset Value (NAV) shows the total equity of the firm if divided by the number of outstanding shares. It is the net asset value per share of a company.

In this case, we will calculate the value of the 100 shares.

NAV = ((Assets - Liabilities) / Shares outstanding) * 100 shares

NAV = ((225,000,000 - 30,000,000) / 10,000,000) * 100

NAV = 1,950