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Market Capitalization of a Company Represents the Value of the Company

Question 4

Multiple Choice

Market capitalization of a company represents the value of the company by _________________.


A) Multiplying the current stock price by the number of shares outstanding
B) Subtracting the liabilities from the assets
C) Subtracting liabilities from the adjusted market value of the assets
D) Comparing it to the value of similar companies

Correct Answer:

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