Which of the Following Statements Is Correct with Regard to Market

Multiple Choice

Which of the following statements is correct with regard to market capitalization?

A) There is considerable stability in the market capitalization of companies from year to year.
B) Market capitalization is computed by dividing owners' equity by the number of outstanding shares.
C) Currently,in Canada,the companies with the highest market capitalization are financial institutions or resource companies.
D) There is general agreement that market capitalization really doesn't tell us very much about the real value of a company.
E) All of these statements are correct.