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Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,539 Current liabilities $ 29,740 Long-term
Here is a simplified balance sheet for Locust Farming:
Locust Farming | |||||||
Balance Sheet | |||||||
($ in millions) | |||||||
Current assets | $ | 42,539 | Current liabilities | $ | 29,740 | ||
Long-term assets | 46,862 | Long-term debt | 27,767 | ||||
Other liabilities | 14,347 | ||||||
Equity | 17,547 | ||||||
Total | $ | 89,401 | Total | $ | 89,401 | ||
Locust has 660 million shares outstanding with a market price of $98 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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