Assume Boeing has about 10.3 billion shares outstanding and the stock price is $37.10. Also, assume the P/E ratio is about 18.3. Calculate the approximate market capitalization for GE.
A)$679 billion
B)$188 billion
C)$382 billion
D)$103 billion

Question

Quizplus · Accepted Answer

Market capitalization = number of shares outstanding * stock price
Market capitalization for Boeing = 10.3 billion * $37.10 = $381.73 billion
Market capitalization for Boeing can be used as an estimate of GE's market capitalization because both companies are in the same industry and have similar P/E ratios. Therefore, the answer is approximately $382 billion.

Assume Boeing Has About 10