The approximate market capitalization for BA is $382 billion. Option B is the right choice.
Market capitalization: The market capitalization is calculated by multiplying the number of outstanding shares by the current stock price.
Outstanding shares: 10.3 billion
Stock price: $37.10
Therefore, the market capitalization is:
10.3 billion shares * $37.10/share = $382.13 billion
Earnings per share: The earnings per share (EPS) is calculated by dividing the stock price by the P/E ratio.
P/E ratio: 18.3
Therefore, the EPS is:
$37.10/share / 18.3 = $2.03
The approximate market capitalization for BA is $382 billion. Option B is the right choice.
Question:-
Assume Boeing has about 10.3 billion shares outstanding and the stack price is $37.10. Also, assume P/E ration is about 18.3. Calculate the approximate market capitalization for BA.
a. $679 billion
b. $382 billion
c. $188 billion
d. $103 billion