MARKET CAPITALISATION

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July 21, 2016 at 10:37 am #328190
Fred
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Can someone assist on how market capitalisation ratio was computed in Chapter 4 answers to exmaple one in Open tuition lecture notes.
July 21, 2016 at 2:19 pm #328224
John Moffat
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Market capitalisation is the total market value of the shares = total earnings x PE ratio.

Year 1: 17 x 5.1 = 86.7
Year 4: 19 x 7.55 = 143.45
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