Which of the Following Is Correct with Regard to Market

question 199

Multiple Choice

Which of the following is correct with regard to market capitalization?

• A) There is considerable stability in the market capitalization of companies from year to year.
• B) Market capitalization is computed by dividing owners' equity by the number of outstanding shares.
• C) In Canada, most of the companies with the highest market capitalization are financial institutions or resource companies.
• D) There is general agreement that market capitalization really doesn't tell us very much about the real value of a company.
• E) All of these are correct.

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Definitions:

Opposite Directions

Moving or facing away from each other in a straight line.

Linear Inequality

An inequality that involves linear functions. It represents a region of the coordinate plane that satisfies the inequality relation.

Verbal Statement

A statement made using words, especially in mathematics to describe a problem or equation verbally.

Budgeted

Budgeted refers to the amount of money that has been allocated for a specific purpose or period.