ACCA AFM Syllabus B. Advanced Investment Appraisal - Market Capitalisation - Notes 2 / 11
This is very straightforward and is often referred to as “Market Cap”
It is calculated as follows:
Share Price x Number of shares
Illustration
Share Price 96c
Share Capital (nominal value 50c) $60million
Solution
96 x (60/.5) = $115.2 million