Assume a book value per share of $10 and a price per share of $24,what is the market capitalization of a firm with 2,000,000 outstanding shares?
A)$2,000,000
B)$20,000,000
C)$28,000,000
D)$48,000,000

Question

Quizplus · Accepted Answer

Market capitalization is calculated by multiplying the current market price per share by the total number of outstanding shares. Here, $24 per share * 2,000,000 shares = $48,000,000.

Assume a Book Value Per Share of $10 and a Price