a)

Explain what is meant by the market capitalisation of a listed company. How would

you find the market capitalisation of a listed company?

(3 marks)

(b)

If a company has 10,000,000 ordinary shares on issue

with a current market price of

$1.50 per share, calculate the market capitalisation of the company.

(2 marks)

(c)

The financial goal of a listed company is to maximise the shareholders wealth, by

maximising the companys share price. Is this the same as maxim

ising the companys

profit? Explain your answer