If You Multiply the Number of Shares Outstanding for a Stock

question 22

Multiple Choice

If you multiply the number of shares outstanding for a stock by the price per share, you are computing the firm's:

• A)equity ratio.
• B)total book value.
• C)market share.
• D)market capitalization.
• E)time value.

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Definitions:

No-Par

Refers to stock issued without a par value, meaning it has not been assigned a nominal face value.

Market Value

The ongoing rate at which one can buy or sell an asset or service.

Weighted-Average

A method of calculating an average that takes into account the importance, or weight, of each value.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.