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 equity market value including preferred shares?
- A$25 million✓ Correct answer
- B$20 million
- C$21 million
- D$25.5 million
Explanation
Why A — $25 million
Total equity market value including preferred shares is (250,000 x $80) + (50,000 x $100) = $20 million + $5 million = $25 million.
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