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Options
- A
Book Value of the Share × Number of Shares Outstanding
-
Market Price of the Share × Number of Shares Outstanding
Correct answer
- C
EPS of the Share × Number of Shares Outstanding
- D
Face Value of the Share × Number of Shares Outstanding
Why this is the answer
Market capitalization represents the total market value of a company’s outstanding equity shares. It is calculated by multiplying the current market price per share by the total number of outstanding shares. Options involving book value, EPS, or face value do not reflect the actual market value of the company’s equity.
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