Answered step by step
Verified Expert Solution
Question
1 Approved Answer
As the book shows, it claims investors are paying 70% more for Visa than MasterCard according to the market values. Can somebody please explain this
As the book shows, it claims investors are paying 70% more for Visa than MasterCard according to the market values. Can somebody please explain this and show me the math behind it?
Calculating market value of Visa: $80 a share price times 2,429.5 million shares equals $194.4 billion Calculating market value of MasterCard: $100 a share price times 1,131.4 million shares equals $113.1 billion You can see that investors are in fact paying 70 percent more for Visa than Mas- terCard. Whether they're paying too much is another question. But at this pointStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started