Crayfish Carruthers plc is listed on the Alternative Investment Market of the London Stock Exchange.Its ordinary share capital comprises 1 700 000 shares at a nominal value of 50p.The company's currently quoted share price is 65p per share.Crayfish Carruthers' directors announced last week that a dividend of 5p per share will be payable to shareholders at the end of next month. What is the company's current market capitalization?

Question

Quizplus · Accepted Answer

The current market capitalization can be calculated as follows: 
Number of shares * share price = market capitalization 
1 700 000 * 0.65 = £1 105 000 
Since the dividend has not yet been paid, it is not relevant to the calculation of the current market capitalization.

Crayfish Carruthers Plc Is Listed on the Alternative Investment Market