Question

Functions of Financial Markets. Look back at Section 2.3 and then answer the following questions: (LO2-3) a. The price of Yum! Brands stock has risen to $180. What is the market value of the firm’s equity if the number of outstanding shares does not change

Answer 1

Answer:

It seems that someinformation is missing, nevertheless, it is possible to calculate the market value of the firm if you have the total number of shares.

Explanation:

In this case, if the question says that the "outstanding shares" haven't changed, it means that the total number of shares neither, therefore it is possible to get the market value by multiplying $180 (the stock price for 1 share) per the total number of shares