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Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,541 Current liabilities $ 29,738 Long-term
Here is a simplified balance sheet for Locust Farming:
Locust Farming | |||||||
Balance Sheet | |||||||
($ in millions) | |||||||
Current assets | $ | 42,541 | Current liabilities | $ | 29,738 | ||
Long-term assets | 46,866 | Long-term debt | 27,769 | ||||
Other liabilities | 14,351 | ||||||
Equity | 17,549 | ||||||
Total | $ | 89,407 | Total | $ | 89,407 | ||
Locust has 662 million shares outstanding with a market price of $100 a share.
a. Calculate the companys market value added. (Enter your answers in millions.)
b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.)
c. How much value as the company created for its shareholders as a percent of shareholders equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)
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