Firm market capitalization


Last year hot shots exterminators, inc. conducted an IPO, issuing 1 million common shares with a par vale of $1 to investors at a price of $10 per share. During its first year of operation, hot shots earned a net income of $0.20 per share and paid a dividend of $0.05 per share. At the end of the year, the company's stock was selling for $15 per share. Construct the equity accounts for hot shots at the end of its first year in business, and calculate the firm's market capitalization.

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Finance Basics: Firm market capitalization
Reference No:- TGS039484

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