Ask Question
BusinessBusiness
29 May, 06:29

Assume that you have just purchased some shares in an investment company reporting $560 million in assets, $40 million in liabilities, and 40 million shares outstanding. What is the net asset value (NAV) of these shares

+5
Answers (2)
  1. 29 May, 07:31
    0
    The net asset value of the company is 13 million dollars per share.

    Explanation:

    Net asset value is a measure to represent the value of a company by share. The concept works under the following formula: Assets-liabilities Divided by the outstanding shares. It is a fundamental used to find out if the stock price is undervalued, overvalued or in price. Very similar to P/B and Free cash per share. To calculate it you find the value of its assets in the balance sheet and subtract the liabilities. The result will be divided by the total outstanding shares and t will be equal to a value to share. That is the most important factor here, it establishes a representation of the total assets of the company to each share.
  2. 29 May, 08:31
    0
    NAV = 13 million

    Explanation:

    Given that:

    assets: $560 million liabilities: $40 million shares outstanding: $40

    Net Asset = Assets - Liabilities = $560 million - $40 million = $520 million

    As we know that the formula to find net asset value is:

    NAV = Net Assets : Outstanding no. of share

    NAV = $520 million : $40 million

    NAV = 13 million

    Hope it will find you well.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that you have just purchased some shares in an investment company reporting $560 million in assets, $40 million in liabilities, and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which war is tim o briens ambush based on
Answers (1)
Research published in Personnel Psychology shows that older workers are slightly more willing to implement organizational changes than younger workers.
Answers (1)
Balance sheet and income statement data indicate the following: Bonds payable, 6% (this is year 4 of 20 years) $1,200,000 Income before income tax for year 340,000 Income tax for year 80,000 Interest payable 9,000 Interest receivable 26,000 Based on
Answers (1)
The General Fund of a city pays all utility bills received from private companies for services provided to city agencies. It then bills other funds for their shares of the bills. On May 10, the General Fund pays an electric bill for $230,000.
Answers (1)
What kind of steps should you take to protect yourself from consumer fraud?
Answers (1)
New Questions in Business
The following transactions occurred during the first year of operations for Cougar Corp. for each transaction prepare the year-end adjusting journal entry. Note: these ARE adjusting entries. a. Cougar Corp.
Answers (1)
Given the following information for a one-year project, answer the following questions. Recall that PV is the planned value, EV is the earned value, AC is the actual cost, and BAC is the budget at completion.
Answers (1)
Preferred Stock, 7%, $115 par $1,170,000 Common Stock, $1.50 par 300,000 Paid in capital in excess of par, common stock 1,200,000 Retained earnings 2.500.
Answers (1)
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.
Answers (1)
Department B had a beginning inventory of 2,400 units, 25% completed; an ending inventory of 2,700 units, 2/3 completed, and received 4,900 units during the period from Department A.
Answers (1)
Home » Business » Assume that you have just purchased some shares in an investment company reporting $560 million in assets, $40 million in liabilities, and 40 million shares outstanding. What is the net asset value (NAV) of these shares
Sign Up Forgot Password?