Here is some data on ABC Corporation...
In the box below, enter the value of ABC's market
capitalization.
Solutions:-
ABC Corporation
Outstanding Shares = 100,000
Sales Price = $10 Per Share
Par Value = $0.01
Market Value = $12
Retained Earnings = $50,000
Book value of ABC's Assets = $70,000
ABC's Market Capitalization = ?
Now, As per the Market Capitalization formula.
= 100000*12
= $1200,000
Hence, ABC's Market Capitalization is $1200,000.
(Where, MC is the market capitalization, N is the number of shares outstanding, and P is the closing price per share or Market value of share)
Note:-Sales Price Per Share, Par Value, Retained Earnings and Book value of ABC's Assets doese not affect the market capitalization of ABC.
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