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Question 5 (10 points) How do you calculate market capitalization, and what does it tell you? a Earnings divided by number of shares. It tells
Question 5 (10 points) How do you calculate market capitalization, and what does it tell you? a Earnings divided by number of shares. It tells you how much of earnings each stockholder is entitled to. b Share price divided by earnings per share. It tells you how much investors are willing to pay for every dollar of earnings. c Share price * number of outstanding shares. It tells you the market value of the equity of a company
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