Kunal knows that the Net Asset Value of a mutual fund is calculated daily at the end of the day once the stock exchange closes. The Net Asset Value Per Share (NAVPS) changes daily since the value of assets and liabilities changes every day as the number of outstanding shares also changes constantly when investors redeem their shares, or new investors buy new shares. Kunal wants you to calculate the NAVPS in Invincible Inc. mutual fund based on the current market value data below:
Total liabilities: $22,900,000
Total assets: $395,050,000
Total number of shares outstanding: 29,550,000
To calculate the Net Asset Value Per Share (NAVPS) of Invincible Inc. mutual fund, use the following formula:
NAVPS = (Total assets - Total liabilities) / Total number of shares outstanding
Plugging in the values given:
NAVPS = ($395,050,000 - $22,900,000) / 29,550,000
NAVPS = $372,150,000 / 29,550,000
NAVPS = $12.57
Therefore, the Net Asset Value Per Share (NAVPS) of Invincible Inc. mutual fund is $12.57.