SIE practice questionmediumMarket Cap
A company has 5 million shares outstanding at $20 per share. Its market capitalization is:
- A$100 million✓ Correct answer
- B$25 million
- C$10 million
- D$200 million
Explanation
Why A — $100 million
Market cap = 5,000,000 x $20 = $100 million. The other answers miscalculate the formula.
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