Use the following information to answer the question(s)below.
Suppose the market consists only of Merck (MRK)and Boeing (BA).Merck stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing has 697.5 million shares outstanding and a market capitalization of $38.223 billion.Assume that you hold the market portfolio.
-Boeing's stock price is closest to:
A)$18.25.
B)$36.70.
C)$54.80.
D)$63.40.

Question

Quizplus · Accepted Answer

To find Boeing's stock price, we need to first calculate its price per share. We can do this by dividing Boeing's market capitalization by the number of outstanding shares:

Boeing's Price per Share = Market Capitalization / Number of Outstanding Shares
Boeing's Price per Share = $38.223 billion / 697.5 million
Boeing's Price per Share = $54.80

Therefore, the answer is C) $54.80.

Use the Following Information to Answer the Question(s)below