ACE Enterprises has issued 23,400,000 ordinary shares at a nominal value of 20c each. The current share price on the stock market is €1.75. What is the company's current market capitalisation?

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Prepare for the Qualified Financial Adviser Exam 2 with flashcards and multiple choice questions, complete with hints and explanations. Get exam-ready and increase your confidence with our comprehensive study materials!

Multiple Choice

ACE Enterprises has issued 23,400,000 ordinary shares at a nominal value of 20c each. The current share price on the stock market is €1.75. What is the company's current market capitalisation?

Explanation:
Market capitalisation is the total market value of all outstanding shares, calculated as the current price per share multiplied by the number of shares in issue (outstanding). The nominal value of the shares doesn’t affect market cap. Here, 23,400,000 shares × €1.75 per share = €40,950,000, or €40.95 million.

Market capitalisation is the total market value of all outstanding shares, calculated as the current price per share multiplied by the number of shares in issue (outstanding). The nominal value of the shares doesn’t affect market cap.

Here, 23,400,000 shares × €1.75 per share = €40,950,000, or €40.95 million.

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