You observe that the Express Company has total shareholders' equity on its balance sheet of $5 billion, total debt on its balance sheet of $3 billion, and its common stock has a price per share of $20. If Express has 1 billion shares outstanding, its market value is closest to:
A) $5 billion
B) $8 billion
C) $20 billion
D) $23 billion

Question

Quizplus · Accepted Answer

The market value of Express Company is calculated by multiplying the price per share by the number of shares outstanding. With a price per share of $20 and 1 billion shares outstanding, the market value is $20 billion ($20 * 1 billion).

You Observe That the Express Company Has Total Shareholders' Equity