Use the table for the question(s)below.
Consider the following stock price and shares outstanding data:
-The total market capitalization for all four stocks is closest to:
A)$479 Billion.
B)$415 Billion.
C)$2100 Billion.
D)$200 Billion.

Question

Use the table for the question(s)below.
Consider the following stock price and shares outstanding data: 
-The total market capitalization for all four stocks is closest to:
A)$479 Billion. 
B)$415 Billion. 
C)$2100 Billion. 
D)$200 Billion.

Quizplus · Accepted Answer

To find the total market capitalization, we need to multiply the stock price by the shares outstanding for each stock and then add them up.

For Stock A: market cap = $70 x 2 billion = $140 billion 
For Stock B: market cap = $35 x 2.5 billion = $87.5 billion 
For Stock C: market cap = $15 x 1 billion = $15 billion 
For Stock D: market cap = $10 x 2 billion = $20 billion

Total market cap = $140 billion + $87.5 billion + $15 billion+ $20 billion= $262.5 billion

None of the answer choices are exactly $262.5 billion, but choice B, $415 billion, is the closest.

Use the Table for the Question(s)below