An investor can easily ascertain the _____ of common equity for a given publicly traded firm by looking up the most recent share price (as reported in various online services) and then multiplying this share price times the number of common shares outstanding, as reported on the balance sheet.
A)market value
B)state value
C)par value
D)nominal value
E)liquidation value

Question

Quizplus · Accepted Answer

The market value of common equity is the current price at which the stock is being traded in the market. This can be easily obtained by multiplying the current share price by the number of common shares outstanding. The other options (state value, par value, nominal value, and liquidation value) do not provide an accurate representation of the current value of the equity.

An Investor Can Easily Ascertain the _____ of Common Equity