Question

A company has a million shares of stock with a price of $10 a share. Multiplying these two numbers results in $10 million which indicates its
a. Profit
b. Profit margin
c. Market value
d. Return on stockholders’ equity
e. Return on assets

Answer 1

The result of multiplying the number of shares (1 million) by the price per share ($10) gives you the total market capitalization of the company, which is $10 million. Therefore, the correct answer is:

**c. Market value**