Here is a simplified balance sheet for Locust Farming:

Locust Farming
Balance Sheet
($ in millions)
Current assets	$	42,531		Current liabilities	$	29,748
Long-term assets		46,846		Long-term debt		27,759
				Other liabilities		14,331
				Equity		17,539
Total	$	89,377		Total	$	89,377

((((((Please just answer question C-how much value has the comapny created for its shareholdsers as a percent of the investment of the equity holders?) Thank you!! ((((The answer is not 341%)

Locust has 664 million shares outstanding with a market price of $90 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 has the company created for its shareholders as a percent of the investment of the equity holders?

Answer for A and B:

Market Value of Equity = Market Price per share * Number of shares outstanding Market Value of Equity = $90 * 664 million Market Value of Equity = $59,760 million

Market Value Added = Market Value of Equity - Book Value of Equity Market Value Added = $59,760 million - $17,539 million Market Value Added = $42,221 million

Answer b.

Market-to-book Ratio = Market Value of Equity / Book Value of Equity Market-to-book Ratio = $59,760 million / $17,539 million Market-to-book Ratio = 3.41