If a firm has a 2 million shares outstanding and its stock trades at $25, the company has a market capitalization of $50,000,000.

Question

Quizplus · Accepted Answer

Market capitalization is calculated by multiplying the number of shares outstanding by the current market price per share. Therefore, in this case, 2 million shares outstanding multiplied by $25 per share equals a market capitalization of $50,000,000.

If a Firm Has a 2 Million Shares Outstanding and Its