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A firm has 50 million shares outstanding, and each share is traded at $1,000. Also, each shareholder gets a dividend of $20,000 annually. In this
A firm has 50 million shares outstanding, and each share is traded at $1,000. Also, each shareholder gets a dividend of $20,000 annually. In this case, the market capitalization is $2,000,000, that is, $20,000 * $1,000. $50 billion, that is, 50 million shares $1,000. 20:1, that is, $20,000/$1,000. 50,000 shares, that is, 50 million shares/$1,000
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