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In Business / College | 2025-07-07

Chyra redeemed 175 shares of stock she owned in the fund shown below.

| Name of Fund | NAV | Offer Price |
| :----------- | :--------- | :---------- |
| CAH Group | $15.83 | $16.27 |

What were Chyra's proceeds?
A. $77.00
B. $2,770.25
C. $2,847.25
D. $5,617.50

Asked by fernandoduran2626

Answer (1)

Multiply the number of shares redeemed by the Net Asset Value (NAV).
Calculate: 175 shares * $15.83/share.
The total proceeds are $2770.25.
Chyra's proceeds from redeeming 175 shares are: $2 , 770.25 ​ .

Explanation

Understanding the Problem Chyra redeemed 175 shares of stock. To calculate Chyra's proceeds, we need to multiply the number of shares she redeemed by the Net Asset Value (NAV) of the fund, which is the price per share the fund is willing to pay when redeeming shares. The NAV is given as $15.83 per share.

Calculating Total Proceeds To find the total proceeds, we multiply the number of shares (175) by the NAV per share ($15.83):

Performing the Calculation Total Proceeds = 175 shares * $15.83/share Total Proceeds = $2770.25

Final Answer Therefore, Chyra's proceeds from redeeming 175 shares are $2770.25.


Examples
Understanding stock redemption is crucial in personal finance. For instance, if you own shares in a mutual fund and decide to redeem 50 shares when the NAV is $20, you would calculate your proceeds as 50 shares * $20/share = $1000. This calculation helps you understand the cash value you'll receive. Knowing how to calculate proceeds is essential for managing investments and making informed financial decisions.

Answered by GinnyAnswer | 2025-07-07

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