Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

Please describe market capitalization as a valuation method, what are strengths and weaknesses? Then,please discuss book value as a valuation method. Compare it to market capitalization.

1 answer below »
Please describe market capitalization as a valuation method, what are strengths and weaknesses? Then,please discuss book value as a valuation method. Compare it to market capitalization.
Answered Same Day Dec 15, 2019

Solution

David answered on Dec 24 2019
157 Votes
Market Capitalization or Market cap is the total value of outstanding shares of a Company (Kenon 2016).
Market Cap=Number of Outstanding shares x Present Cost of 1 share.
For example If a company has 25 million outstanding shares and cost of a single share is $50, then it will have Market Cap of 20 million x $50 =$1 Billion.
Market Cap value is used to estimate the strength and size of a company in terms of potential investment and trade capacity.
i. Market Capitalization can tell the investors about relative size of a...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here