Which of the Following Statements Is Correct with Regard to Market

question 5

Multiple Choice

Which of the following statements 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) Currently,in Canada,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 statements are correct.

---

Definitions:

Appetite

The natural desire to satisfy a bodily need, especially for food.

Cholesterol

A waxy, fat-like substance that's found in all cells of the body, important for the synthesis of vitamin D, steroid hormones, and bile acids.

Hypovolemic Thirst

Thirst resulting from low bodily fluid volume, typically due to blood loss, sweating, or dehydration.

Osmotic Thirst

Osmotic thirst is a sensation of thirst aroused by a high concentration of solutes in the body's fluids, leading to a drive to consume water to dilute these solutes.