If a company has 100 million in shares outstanding and a share price of $10, what is the company's market capitalization?

Prepare for the Leveraged Finance Interview Technical Test. Study with comprehensive resources and challenging quizzes that include hints and explanations. Boost your confidence and ace your interview!

To determine a company's market capitalization, you multiply the total number of shares outstanding by the current share price. In this scenario, the company has 100 million shares outstanding, and the share price is $10.

By performing the calculation:

100 million shares * $10 per share = $1 billion.

Thus, the company's market capitalization is indeed $1 billion. This figure represents the total market value of the company's equity, providing investors with an insight into the company's size and market value as perceived by the stock market.

Understanding this concept is crucial as it helps in evaluating the company's position compared to others in its industry, as well as in assessing investment opportunities.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy