When the Number of Shares of Common Stock Outstanding Multiplied

question 325

Multiple Choice

When the number of shares of common stock outstanding multiplied by the price per share is divided by the total market value of the firm the resulting value is defined as the:

• A) Market weight of debt.
• B) Debt-equity ratio.
• C) Cost of capital ratio.
• D) Capital structure weight.
• E) Equity to market weight.

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Definitions:

Credit Column

A section in financial accounting records where increases in liabilities, revenues, and equity accounts, and decreases in assets and expenses are recorded.