Question
In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $44.0 per share, and the market price was $116.30 per share.
In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $44.0 per share, and the market price was $116.30 per share. The companys balance sheet shows that the company had $2.67 billion of long-term debt, which was currently selling near par value.
What was Caterpillars book debt-to-value ratio?
Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.
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.
Which measure should you use to calculate the companys cost of capital?
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
