ompany A has 4 million shares of common stock outstanding trading at $5 per share.Company B has 1 million shares outstanding trading at $20 a share.

a. Which company has the higher market value of equity?

b. If you owned 400 shares of company A's stock, how many shares of company b's stock would someone have to offer you before you would trade your A shares for his B shares?

c. Using the answer from b. give reason as to why someone may not make this trade?Other than stock price, what would and should you consider?

d. If you owned 10 percent of A's equity, how many shares of B's stock would someone have to offer you before you would trade your A shares for his B shares?

e. What is more important to investors: the number of a company's shares they own or the percentage of the company's equity they own?Why?