Conglomicorp Inc has 10.5 million shares of stock outstanding with a book value of $25 per share and a market value of $93 per share. The firm also has $40 million in retained earnings and a required rate of return of 8%
What is the current market capitalization for the firm?
A) $904,166,667
B) $976,500,000
C) $1,097,820,000
D) $1,016,500,000
B
Explanation: B) MKT CAP = P * Q = $93 * 10.5m shares = $976,500,000.
Business
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