A firm has 30 million shares outstanding, and each share is traded at $100. In thiscase, the market capitalization is30,000 shares, that is, 30 million shares/$100$200,000, that is, $2,000 × $100.$3 billion, that is, 30 million shares × $100.20:1, that is, $2,000/$100.

To calculate the market capitalization of a firm, you multiply the number of shares outstanding by…

Answered: A firm has 30 million shares…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 37P

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A firm has 30 million shares outstanding, and each share is traded at $100. In this case, the market capitalization is 30,000 shares, that is, 30 million shares/$100 $200,000, that is, $2,000 × $100. $3 billion, that is, 30 million shares × $100. 20:1, that is, $2,000/$100.