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The Market Capitalization of a Public Company Is $5 Billion

Question 65

Multiple Choice

The market capitalization of a public company is $5 billion. Each share of the company is traded at $200. What do you infer from this financial data?


A) The firm's number of outstanding shares is 25 million.
B) The firm pays an annual dividend of 10 percent.
C) The firm's total return to shareholder is $5 billion.
D) The firm's economic value created is $5 billion.

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