Answered step by step

Verified Expert Solution

Link Copied!

Question

...

1 Approved Answer

Posted on Jun 10, 2024

Capital Structure - In 2013, Caterpillar Inc had about 648 million shares outstanding.Their book value was $27 per share and the market price was $83.50

Capital Structure - 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 (LO13-1).

What was Caterpillars book debt to value ratio?

What was its market debt to value ratio?

Which of these two measures should you use to calculate the company's cost of capital?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Dhanesh K. Khatri

1st Edition

9780071078023

Students also viewed these Finance questions

Question

★★★★★

A group of students loads a 2 4-m flatbed trailer with two 0.6 0.6 0.6-mboxes and one 0.6 0.6 1.2-m box. Each of the boxes at the rear of the trailer is positioned so that it is aligned with...

Answered: 1 week ago

Question

★★★★★

31. Basketball Attendances at a high schools basketball games were recorded and found to have a sample mean and variance of 420 and 25, respectively. Calculate x 6s, x 62s, and x 63s. What fraction...

Answered: 1 week ago

Question

★★★★★

Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at...

Answered: 1 week ago

Question

★★★★★

A router commonly forwards traffic based on the destination _ _ _ _ that's within a packet. A switch determines where traffic should be forwarded based on the destination _ _ _ _ inside of that time...

Answered: 1 week ago

Question

★★★★★

Informally, accounting can be described as storytelling with data. Consider the following two alternative more formal definitions of accounting: A. Accounting is the process of capturing, recording...

Answered: 1 week ago

Question

★★★★★

Question 1 Calculate the limit: \[ \lim_{{x \to 0}} \frac{\sin(5x)}{x} \] Question 2: Find the derivative of the function $ f(x) = x^3 - 3x^2 + 4x - 7 $.

Answered: 1 week ago

Question

★★★★★

Question 1: Evaluate the integral: \[ \int (2x^2 - 3x + 5) \, dx \] Question 2: Determine the convergence or divergence of the improper integral: \[ \int_1^\infty \frac{1}{x^2} \, dx \] Question 3:...

Answered: 1 week ago

Question

★★★★★

Question 1: Discuss the concept of social stratification. How does it manifest in modern societies, and what are the implications for social mobility? Question 2: Examine the role of culture in...

Answered: 1 week ago

Question

★★★★★

Question 1: Discuss the concept of social change. What are the main factors that contribute to social change, and how do these factors interact? Question 2: Evaluate the role of education in...

Answered: 1 week ago

Question

★★★★★

Question 1 Discuss the various stages of cognitive development as proposed by Jean Piaget. How do these stages explain the differences in cognitive abilities observed in children of different ages?...

Answered: 1 week ago

Question

★★★★★

QUESTION 6 A person throws a ball upward into the air with an initial velocity of 15 m/s. Her hand is 1.2 m above the ground. Take g = 9.80 m/s2. Ignore air resistance and take downwards as -ve. What...

Answered: 1 week ago

Question

★★★★★

Describe three different revenue models for a portal such as Yahoo!

Answered: 1 week ago

Question

★★★★★

Describe two alternative approaches for using digital business to change a companys value chain.

Answered: 1 week ago

Question

★★★★★

Describe some alternative revenue models for the website of a magazine publisher.

Answered: 1 week ago

Previous Question Next Question