In 2013 Caterpillar Inc had about 648 million shares outstanding Their book value was $27 per share, and the market price was $83 50 per share The company 's balance sheet shows that the company had $25 7 billion of long term debt, which was currently selling near par value a What was Caterpillar '...

a b c Market value is the pro ...

In 2013 Caterpillar Inc. had about 648 million shares outstanding. Their book value was $27 per share,

Question:

In 2013 Caterpillar Inc. had about 648 million shares outstanding. Their book value was $27 per share, and the market price was $83.50 per share. The company's shows that the company had $25.7 billion of long-term debt, which was currently selling near par value.
a. What was Caterpillar's book debt-to-value ratio?
b. What was its market debt-to-value ratio?
c. Which of these two measures should you use to calculate the company's cost of capital?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...