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The net asset value per share (NAVPS), also referred to as the book value per
share, is an expression for net asset value that represents the value per share of
a mutual fund, exchange-traded fund (ETF) or a closed-end fund. It is calculated by
dividing the total net asset value of the fund or company by the number of shares
outstanding.
Here, assets include the total market value of the fund's investments, cash and
cash equivalents, receivables and accrued income. Liabilities equal total short-
term and long-term liabilities, plus all accrued expenses, such as staff salaries,
utilities and other operational expenses. The total number of expenses many be
large as management expenses, distribution and marketing expenses, transfer agent
fees, custodian and audit fees may all be included.
For example, a mutual fund with 7.5 million shares outstanding has $500 million in
investments, $15 million in cash, $1.5 million in receivables and accrued income of
$250,000. As for liabilities, the fund has $20 million in short-term liabilities
and $5 million in long-term liabilities. The fund has $35,000 of accrued
operational expenses and $15,000 of other accrued expenses. The assets, liabilities
and NAVPS are calculated as: