Question

OMG Incorporated has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 50 thousand bonds. If the common shares are selling for $21 per share, the market capitalization of the common stock can be calculated as follows:

Answer 1

The market capitalization of OMG Incorporated's common stock is $84 million.

Step-by-step explanation:

To calculate this, multiply the number of common shares outstanding (4 million) by the market price per share ($21). This formula provides the total market value of the common stock. In this case, the market capitalization for common stock is $84 million.

Market capitalization is a key metric for investors and analysts, representing the total value of a company's outstanding common stock in the open market. It is a useful indicator of the company's size and significance in the financial markets.

Understanding market capitalization is essential for investors assessing investment opportunities and comparing companies within the same industry or sector.