A public firm's market capitalization is equal to the:

Question

Quizplus · Accepted Answer

Market capitalization represents the total value of a company's equity, which is equal to the current stock price per share multiplied by the total number of outstanding shares. Therefore, option C is the correct answer. Option A refers to the book value of assets minus debt, which is not related to market capitalization. Option B refers to the par value of common equity, which is not necessarily the same as the market value of the shares. Option D refers to the number of authorized shares, which does not necessarily reflect the number of outstanding shares or the market value of the company. Option E refers to the maximum value an acquirer would pay, which is not necessarily the same as the current market capitalization of the company.

A Public Firm's Market Capitalization Is Equal to The