Conglomicorp Inc has 10.5 million shares of stock outstanding with a b

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

ANSWER

B
Explanation: B) MKT CAP = P * Q = $93 * 10.5m shares = $976,500,000.