A Firm Has 30 Million Shares Outstanding, and Each Share

question 61

Multiple Choice

A firm has 30 million shares outstanding, and each share is traded at $100. Also, each shareholder gets a dividend of $2,000 annually. In this case, the market capitalization is

• A) 30,000 shares, that is, 30 million shares/$100.
• B) $200,000, that is, $2,000 × $100.
• C) $3 billion, that is, 30 million shares × $100.
• D) 20:1, that is, $2,000/$100.

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Definitions:

Perceptual Adaptation

In vision, the ability to adjust to an artificially displaced or even inverted visual field.

Apparent Location

The perceived position of an object or event in space, which may differ from its actual position.

Corrective Eye Surgery

Surgical procedures designed to correct refractive errors of the eye, such as myopia, hyperopia, and astigmatism, aiming to reduce dependence on eyeglasses or contact lenses.

Figure-ground Relationships

A perceptual separation between an object (the figure) and its immediate background (the ground), crucial in visual recognition and understanding.