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Sajjad1994
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The graph shows the market capitalization value in millions of dollars Updated on: 17 Nov 2023, 00:10
Originally posted by Sajjad1994 on 10 Apr 2020, 10:25.
Last edited by BottomJee on 17 Nov 2023, 00:10, edited 1 time in total.
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Dropdown 1: 183$ Dropdown 2: More than
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

95% (hard)

Question Stats:

51% (03:31) correct 49% (03:33) wrong based on 167 sessions

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The graph shows the market capitalization value in millions of dollars for the largest companies in the market as of May 17, 2012. Facebook, priced at $38 for the IPO, is bolded and rankings in at $104 B market cap value.

1. Facebook's stock would have to increase to roughly per share in order for Facebook's market capitalization value to reach the value of Apple's market cap.

A. 145$
B. 183$
C. 200$

2. Of the 29 companies listed, the top 10 make up the remaining 19 companies combined.

A. More than
B. The same
C. Less than

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1. B
2. A


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Dropdown 1: 183$ Dropdown 2: More than
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BlueBook
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The graph shows the market capitalization value in millions of dollars 10 Apr 2020, 10:57
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1) Apple’s market cap is ~ $499B. Therefore, Apple’s market cap is 498/104~500/100 = 5 times bigger than Facebook’s. Hence, Facebook’s share price would have to increase 5 times to match Apple’s. $38 x 5 = $190. $183 is closer to $190 than $200, thus $183 is the answer.

2) The top 10 ~ ($499+$385+$252+$230+$217+$211+$205+$201+$199+$196)B = $2.595T.
The remaining 19 ~ ($176+$175+$171+$170+$168+$144+$133+$131+$130+$118+$116+$108+$104+$100+$98+$98+$98+$94+$91+$91)B = $2.514T. Hence top 10 make up more than remaining 19.
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The graph shows the market capitalization value in millions of dollars 12 Apr 2020, 00:29
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1)B,sinceApple’s market cap is $498704M. So, Apple’s market cap is 498704/104000 =4.79 times bigger than Facebook’s. Hence, Facebook’s share price would have to increase 4.79 times to match Apple's share price. $38 x 4.79 = $182.02.So answer would be 183

2)A, The top 10 ~ $2.61T.
The remaining 19 ~ $2.53T. Hence top 10 make up more than remaining 19.

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The graph shows the market capitalization value in millions of dollars 14 Feb 2023, 07:05
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Hey avigutman - how would you take on the 2nd question ?

i could count literally like how this post has done but i was wondering, how would you do it

Eye-balling it , i thought the market cap for lower 19 companies were probably more than the top 10 companies.

Why ? hmmm because the average of the top 10 companies is certainly higher but the average of the bottom 19 companies

BUT, the number of terms (19 vs 10) should be able to compensate for the lower average

that was my thinking at-least

Thank you
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The graph shows the market capitalization value in millions of dollars 01 Mar 2024, 07:43
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This question was to calculative and I would probably bookmark it, take a wild guess and save it for later in the OG GMAT FE Exam.

QUESTION ONE

Apple’s market cap is ~ $499B
Approximately 5 times Facebook.

Facebook’s share price would have to increase 5 times to match Apple’s.
$38 x 5 = $190.
$183 is closer to $190 than $200, thus $183 is the answer.

QUESTION TWO
The top 10 = $2.59T.
Remaining 19 = $2.54T

Clearly the answer should be MORE THAN.
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The graph shows the market capitalization value in millions of dollars 09 Apr 2024, 07:49
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jabhatta2
Hey avigutman - how would you take on the 2nd question ?

i could count literally like how this post has done but i was wondering, how would you do it

Eye-balling it , i thought the market cap for lower 19 companies were probably more than the top 10 companies.

Why ? hmmm because the average of the top 10 companies is certainly higher but the average of the bottom 19 companies

BUT, the number of terms (19 vs 10) should be able to compensate for the lower average

that was my thinking at-least

Thank you
jabhatta2 Unfortunately, these numbers are too close to eyeball it, so you actually have to use the calculator and add the 29 values, which I don't believe is representative of the actual exam. I recommend prioritizing questions that are tagged as official (GMAT Prep and Official Guide, but NOT "GMAT Prep - Focus" if you don't want to bias your practice test scores).  

https://gmatclub.com/forum/advanced-search/

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