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Caterpillar 2020 Caterpillar 2019 Revenue $25.9 Billion $23.4 Billion PE ratio 25 21 Total Assets $65.8 Billion $57.9 Billion Total Debt $56.2 Billion $51.4 Billion

Caterpillar 2020

Caterpillar 2019

Revenue

$25.9 Billion

$23.4 Billion

PE ratio

25

21

Total Assets

$65.8 Billion

$57.9 Billion

Total Debt

$56.2 Billion

$51.4 Billion

Net Income

$2.2 Billion

$1.5 Billion

Dividend per share

$2.40

$2.40

EPS

$6.76

$4.83

Compare Caterpillars ROE for 2020 and 2019 using the Dupont analysis. (TAT,EM,NPM)

Calculate Caterpillars expected return for 2019 using the sustainable growth rate and the dividend discount model. Given the price per share for 2020, how well did the expected return from 2019 predict the current price?

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