Use the Following Information to Answer the Question(s)below

question 98

Multiple Choice

Use the following information to answer the question(s) below.
Suppose the market consists only of Merck (MRK) and Boeing (BA) .Merck stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing has 697.5 million shares outstanding and a market capitalization of $38.223 billion.Assume that you hold the market portfolio.
-Merck's market capitalization is closest to:

• A)$38.2 billion.
• B)$77.4 billion.
• C)$89.4 billion.
• D)$115.6 billion.

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Definitions:

Trial Balance

A financial worksheet aggregating all ledger balances into equivalent totals of debit and credit columns.

Account Balances

The amounts of money in an account at any given time, representing the net of debits and credits over a period.

Cash Payments

Outflows of cash from a company to settle debts, purchase goods or services, or make investments.

Cash Account

An account recording the amounts of cash received and paid out in transactions.