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?