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Market capitalisation of a listed company

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a) Explain what is meant by the market capitalisation of a listed company. How would you find the market capitalisation of a listed company?

b) If a company has 10,000,000 ordinary shares on issue with a current market price of $1.50 per share, calculate the market capitalisation of the company.

c) The financial goal of a listed company is to maximise the shareholders' wealth, by maximising the company's share price. Is this the same as maxim ising the company's profit? Explain your answer

Reference no: EM131434621

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