Question

Payton's Pizza has a share price of $40 and there are 2,000 shares outstanding. What is the market cap of Payton's Pizza?

Answer 1

Answer: $80,000

Explanation:

Current market price per share = $40

Toral number of shares outstanding = 2000

Market capitalization = Current market price per share × total number of outstanding shares)

Market cap of payton's pizza $40 × 2000 = $80,000