Question

As of 2018, Apple had 5 billion outstanding shares. The stock price is roughly $200.

A) How much is Apple worth?

B) If all tangible assets total $1 Billion, what
represents the rest of Apple's worth?

Answer 1

Therefore, the value of the company is $ 1,000,000,000,000, that is, a trillion dollars. In turn, if the tangible assets of the company are worth 1 billion, all the other intangible assets of the company are worth 999 billion.

Explanation:

Given that as of 2018, Apple had 5 billion outstanding shares whose stock price is roughly $ 200, to determine the value of the company and determine, if all tangible assets total $ 1 Billion, what represents the rest of Apple's worth, the following calculations must be done:

5 billion = 1,000,000,000

5,000,000,000 x 200 = X

1,000,000,000,000 = X

1 trillion = 1000 billions

1000 - 1 = 999

Therefore, the value of the company is $ 1,000,000,000,000, that is, a trillion dollars. In turn, if the tangible assets of the company are worth 1 billion, all the other intangible assets of the company are worth 999 billion.