Equity

A company has 5 million common stock. If the market price of the stock is $45 what is the market value of equity?

Solutions

Expert Solution

Here,

Number of common stock = 5 Million

The market price of stock = $45

The terms used in the formula

N - Number of common stock

P - Market price of the stock

$ \begin{align}MV &= N \times P\\ &= 5 \ Million \times \$45\\ &= \$225 \ Million \end{align} $

Hence, the market value of common stock is $225 Million

Market Value of common stock is $225 Million

Vinay answered 2 years ago

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