Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2020 , Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $47.0 per share, and the market price was $107.30 per

image text in transcribed In 2020 , Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $47.0 per share, and the market price was $107.30 per share. The company's balance sheet shows that the company had $2.67 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? Note: 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? Note: 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

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

The Routledge International Handbook Of Financialization

Authors: Philip Mader, Daniel Mertens, Natascha Van Der Zwan

1st Edition

1138308218, 978-1138308213

More Books

Students also viewed these Finance questions

Question

33. If the pdf of a measurement error X is f(x) , show that

Answered: 1 week ago

Question

can you solve and put into an excel spreadsheet?

Answered: 1 week ago