A mutual fund has a Net Asset Value (NAV) of $50,000,000 and 2,500,000 units outstanding. The fund generated $1,250,000 in dividends and interest income over the year. It also incurred $600,000 in operating expenses. What is the fund's Net Asset Value per Share (NAVPS)?

Question: A mutual fund has a Net Asset Value (NAV) of $50,000,000 and 2,500,000 units outstanding. The fund generated $1,250,000 in dividends and interest income over the year. It also incurred $600,000 in operating expenses. What is the fund's Net Asset Value per Share (NAVPS)?

Answer options: ✅ $20.00

• $20.26
• $20.50
• $19.74

Correct answer: $20.00

Explanation: NAVPS is calculated as the total Net Asset Value divided by the number of units outstanding. In this case, $50,000,000 / 2,500,000 units = $20.00 per unit. The income and expenses are already factored into the NAV for the period.