Problem if Global has 3.6 million shares outstanding, and these shares are trading for a price of $10.00 per share, what is Global's market capitalization? How does the market capitalization compare to Global's book value of equity? Solution 3 Plan Market capitalization is equal to price per share times shares outstanding. We can nd Global's book value of equity at the bottom of the right side of its balance sheet; I Execute Global's market capitalization is {10.00lshare} X [3.5 million shares] = $36 million. This market capitaliza- tion is signiiicantty higher than Global's book value of equity of $22.2 million. I Evaluate Global must have sources of value that do not appear on the balance sheet. These include potential oppor- tunities tor growth. the quality of the management team. relationships with suppliers and customers. etc