Question: QUESTION 2 [ 1 0 MARKS ] A friend at university notes that you are studying Finance and Investment Management. He asks why ( FNB

QUESTION 2[10 MARKS]
A friend at university notes that you are studying Finance and Investment Management. He asks why (FNB) the First
National Bank was trading at a share price of R47.33 and (STD) Standard Bank R206.50 He would like to know if this
means that STD is much more valuable than FNB.
Describe Market Capitalisation of companies and why it matters giving an example of the two companies above . Which
company has a greater equity value?

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