Question

Hype Inc has 4 million shares outstanding and a P/E ratio of 20. Its earnings per share is $2.60 and share price is $52. What is Hype’s market capitalization? ___

Answer 1

To calculate Hype Inc's market capitalization, multiply its share price by the number of shares outstanding, resulting in $208,000,000.

Step-by-step explanation:

To calculate the market capitalization of a company, you need to multiply its share price by the number of shares outstanding. In the case of Hype Inc, the share price is $52 and the number of shares outstanding is 4 million. By multiplying these two values, you would get the market capitalization of Hype Inc.
Market Capitalization = Share Price x Number of Shares Outstanding

Market Capitalization = $52 x 4,000,000 = $208,000,000

Therefore, Hype Inc's market capitalization is $208,000,000.