Use the following information to answer the question(s)below.
Suppose the market consists only of Merck (MRK)and Boeing (BA).Merck stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing has 697.5 million shares outstanding and a market capitalization of $38.223 billion.Assume that you hold the market portfolio.
-Merck's market capitalization is closest to:
A)$38.2 billion.
B)$77.4 billion.
C)$89.4 billion.
D)$115.6 billion.

Question

Quizplus · Accepted Answer

Merck's market capitalization is calculated by multiplying its stock price by the number of shares outstanding: $36.70 * 2.11 billion = $77.437 billion, which is closest to $77.4 billion.

Use the Following Information to Answer the Question(s)below