A firm has a float of 300 million shares and 10 million restricted shares. It has a total of 1 billion shares authorized and its share price is $10. What is it's market capitalization? O $3 billion O $100 million O $10 billion $3.1 billion
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Market capitalization is the total value of shares in the market. The float of shares represents the total number of shares that the public can buy or sell. The restricted stocks are not included in the float of shares. The authorized shares are the maximum number of shares that an entity can issue.
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