Series 79 practice questionmediumComparable Company Analysis - Equity Value
A company has 10 million shares outstanding and a current share price of $50. What is its equity value?
- A$10 million
- B$500 million✓ Correct answer
- C$50 million
- D$5 million
Explanation
Why B — $500 million
Equity value is shares outstanding multiplied by share price: 10 million x $50 = $500 million. The other options result from incorrect computations.
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