Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is a simplified balance sheet for Caterpilar Tractor: Caterpillar Tractor Balance Sheet (S in millions) Current assets$ 42,527 Current liabilities Long-term assets 46,838 Long-term

image text in transcribed

Here is a simplified balance sheet for Caterpilar Tractor: Caterpillar Tractor Balance Sheet (S in millions) Current assets$ 42,527 Current liabilities Long-term assets 46,838 Long-term debt $29,752 27,755 14,323 17,535 Other liabilities Equity $ 89,365 Total Total $ 89,365 Caterpillar has 660 million shares outstanding with a market price of $86 a share a. Calculate the company's market value added. (Enter your answers in millions.) Market value million Market value added million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio c. Has the company created value for shareholders? Yes 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

International financial management

Authors: Jeff Madura

9th Edition

978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471

More Books

Students also viewed these Finance questions

Question

Briefly discuss the four components of the Workforce Scorecard.

Answered: 1 week ago

Question

=+14. We are doing better in both overall sales and in profits.

Answered: 1 week ago