The number of shares outstanding are multiplied to price of stock to calculate __________?
Correct answer: B. current market values
- A. secondary market values
- B. current market values
- C. past market values
- D. primary market values
Explanation
Multiplying a company's shares outstanding by its current stock price gives its current market value, also called market capitalization. Historical or primary-market values are not calculated from this current-price multiplication.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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