In 2018, Caterpillar Inc. had about 649 million shares outstanding. Their book value was $24.0 per share, and the market price was $155.30 per share. The company's balance sheet shows that the company had $23.80 billion of long-term debt, which was currently selling near par value.

a.What was Caterpillar's book debt-to-value ratio?(Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

b.What was its market debt-to-value ratio?(Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

c.Which measure should you use to calculate the company's cost of capital?