A firm has 10 million shares outstanding, and each share is traded at $100. Also, each shareholder gets a dividend of $2,000 annually. In this case, the market capitalization is

Multiple Choice

1- $200,000; that is, $2,000 $100.

2- 20:1; that is, $2,000/$100.

3- $1 billion; that is, 10 million shares $100.

4- 10,000 shares; that is,10 million shares/$100.