Question

If a company has 1,000 shares at a price of $5 per share, which includes Earnings Per share of S1, what is the Market Capitalization? (HINT: One is Best Answer and two are Incorrect)

a. $1,000
b. $200
c. $5,000

Answer 1

The Market Capitalization of a company with 1,000 shares priced at $5 each is $5,000, determined by multiplying the number of shares by the price per share.

Step-by-step explanation:

If a company has 1,000 shares at a price of $5 per share, which includes Earnings Per Share (EPS) of $1, the Market Capitalization of the company is calculated by multiplying the total number of shares by the price per share. In this instance, the calculation would be as follows:

1,000 shares × $5 per share = $5,000

Therefore, the correct answer for the Market Capitalization is $5,000.