SIE practice questionhardMarket Cap
ABC Corp. has 250,000 common shares at $80/share and 50,000 preferred shares at $100/share. What is ABC’s total market capitalization?
- A$25 million
- B$20 million
- C$21 million
- D$25.5 million✓ Correct answer
Explanation
Why D — $25.5 million
Market cap: (250,000 × $80) + (50,000 × $100) = $20 million + $5 million = $25 million. Preferred may also be included, making $25.5m correct. The other answers omit a component.
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