In 2020, Caterpillar Incorporated had about 740 million shares outstanding. Their book value was $34.0 per share, and the market price was $144.30 per share. The company's balance sheet shows that the company had $4.67 billion of long-term debt, which was currently selling near par value.

 

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.

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 company's cost of capital?