BUSN 380 study Great Stories/busn380study.com BUSN 380 study Great Stories/busn380study.com | Page 125

Problem Set 7
1. Calculating Net Asset Value. Given the information below,
calculate the net asset value for the Boston Equity mutual fund.
Total assets
Total liabilities
$225,000,000
5,000,000
Total number of shares 4,400,000
2. Calculating the Rate of Return of Investment Using Financial
Leverage. Suppose Shaan invested just $10,000 of his own money and
had a $90,000 mortgage with an interest rate of 8.5 percent. If after
three years he sold the property for $120,000.
a. What is his gross profit?
b. What is his net profit/loss?
c. What is the rate of return on investment?