Which of the following represents the market capitalization of a firm?
A) Share price × Number of shares
B) Market share × Industry size
C) Net income ÷ Total assets
D) Earnings per share × Share price
E) Net income ÷ Market price

Question

Quizplus · Accepted Answer

Market capitalization is calculated by multiplying the share price of a company by the number of outstanding shares. It represents the total value or worth of a company in the stock market.

Which of the Following Represents the Market Capitalization of a Firm