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  • Numericals Market Capitalization Method

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    aditikaushik
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    This document compares two methods for calculating market capitalization and index values for 4 companies. The Market Capitalization Method calculates market cap based on outstanding shares and current price, totaling to Rs. 288 million. The Free Float Market Capitalization Method adjusts the calculation to only include shares available for public trading, totaling to Rs. 194 million. It then calculates an index value of 1737.69 by dividing the total current market cap by the total base market cap.

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    This document compares two methods for calculating market capitalization and index values for 4 companies. The Market Capitalization Method calculates market cap based on outstanding shares and current price, totaling to Rs. 288 million. The Free Float Market Capitalization Method adjusts the calculation to only include shares available for public trading, totaling to Rs. 194 million. It then calculates an index value of 1737.69 by dividing the total current market cap by the total base market cap.

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    © All Rights Reserved
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    3 views2 pages

    Numericals Market Capitalization Method

    Uploaded by

    aditikaushik
    This document compares two methods for calculating market capitalization and index values for 4 companies. The Market Capitalization Method calculates market cap based on outstanding shares and current price, totaling to Rs. 288 million. The Free Float Market Capitalization Method adjusts the calculation to only include shares available for public trading, totaling to Rs. 194 million. It then calculates an index value of 1737.69 by dividing the total current market cap by the total base market cap.

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    © All Rights Reserved
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    of 2

    Solution

    Market Capitalisation Method


    Market cap as per
    Number of Price on Market cap as per current price=
    Price on Base Outstanding Current Day Free-Float base price= base current
    Company Day(Rs) Shares (Rs.) Factor price*shares price*shares
    A 200 200000 350 0.65 40000000 70000000
    B 120 400000 220 0.7 48000000 88000000
    C 100 500000 160 0.65 50000000 80000000
    D 140 200000 250 0.7 28000000 50000000
    Total 166000000 288000000

    Index Value Total market cap as per current price/Total market cap as per base price*1000
    1734.939759

    Free Float Market Capitalisation Method


    Market cap as per
    Market cap as per current price=
    Number of Price on base price= base current
    Price on Base Outstanding Current Day Free-Float price*shares*free price*shares*free
    Company Day(Rs) Shares (Rs.) Factor float factor float factor
    A 200 200000 350 0.65 26000000 45500000
    B 120 400000 220 0.7 33600000 61600000
    C 100 500000 160 0.65 32500000 52000000
    D 140 200000 250 0.7 19600000 35000000
    Total 111700000 194100000

    Index Value Total market cap as per current price/Total market cap as per base price*1000
    1737.690242
    ase price*1000

    ase price*1000

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