If a firm's market capitalization is $1 billion and the share price is $50,how many shares outstanding does the firm have?
A) 20 thousand
B) 20 million
C) 500 thousand
D) 50 million

Question

Quizplus · Accepted Answer

The firm has 20 million shares outstanding. Market capitalization = number of outstanding shares × share price. Therefore, to answer the question share price ($50) needs to be divided into the market capitalization ($1 billion).

If a Firm's Market Capitalization Is $1 Billion and the Share