GEN has 3 million shares outstanding and a P/E ratio of 15. Its earnings per share is $3.00. What is GEN's market capitalization?

Question

Quizplus · Accepted Answer

Market capitalization is calculated as the share price times the number of shares outstanding. The share price can be found by multiplying the P/E ratio by the earnings per share (EPS). Here, the share price is 15 * $3.00 = $45. Therefore, the market capitalization is $45 * 3,000,000 = $135,000,000.

GEN Has 3 Million Shares Outstanding and a P/E Ratio