Question

You should sell a stock that has a calculated value of $15 and is priced at...

You should sell a stock that has a calculated value of $15 and is priced at $18

True

False

A company with a market capitalization of $20 bllion must have a higher stock price than a company that has a market capitalization of $20 million.

True

False

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Answer #1

correct answer is true

explanation . expected price of the stock is $15 whereas market price is $18, the investor is receiving the price higher than the expected price by him. the stock is overprice as per the investor expectation and it should be sold out.

correct answer is true

explanation if all things being equal then the highe the capitalisation value of the firm have the higher stock value . in given question if the both the firms have eqjual no of shares with equal face value then the higher market capitalisation firm will giver higher share price per piece.

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