If a mutual fund has an NAV of $100 million, and investors own $10,000,000 of fund's shares, the funds per share value will be:
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A. B. C. D.C
The NAV (Net Asset Value) of a mutual fund represents the value of all the assets held by the fund, minus any liabilities, divided by the total number of shares outstanding.
Given that the mutual fund has an NAV of $100 million and investors own $10,000,000 of the fund's shares, we can calculate the number of outstanding shares as follows:
Outstanding Shares = Investor's Ownership / NAV = $10,000,000 / $100,000,000 = 0.1
So, the mutual fund has 0.1 million (or 100,000) outstanding shares.
To calculate the per-share value, we simply divide the NAV by the number of outstanding shares:
Per-Share Value = NAV / Outstanding Shares = $100,000,000 / 0.1 million = $1,000
Therefore, the correct answer is not among the options provided. The per-share value of the mutual fund is $1,000, not $100, $1, or $10.