Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In early 2015, Ford Motor (F) had a book value of equity of $ 24.8 billion, 4.0 billion shares outstanding, and a market price of

In early 2015, Ford Motor (F) had a book value of equity of $ 24.8 billion, 4.0 billion shares outstanding, and a market price of $ 16.00 per share. Ford also had cash of $ 21.7 billion, and total debt of $ 119.2 billion. Three years later, in early 2018, Ford had a book value of equity of $ 35.0 billion, 4.0 billion shares outstanding with a market price of $ 11.00 per share, cash of $ 26.5 billion, and total debt of $ 154.3 billion. Over this period, what was the change in Ford?s a. market capitalization? b. market-to-book ratio? c. enterprise value? a. Over the 3-year period, what was the change in GE's market capitalization? The change in GE's market capitalization was $ 46.0 billion. (Round to two decimal places.) b. Over the 3-year period, what was the change in GE's market-to-book ratio? The change in GE's market-to-book ratio was 0.56. (Round to two decimal places.) c. Over the 3-year period, what was the change in GE's enterprise value? The change in GE's enterprise value was $ 76.3 billion. what is the solution?

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 Organisational Leadership Audit

Authors: William Tate

1st Edition

0955970717, 978-0955970719

More Books

Students also viewed these Accounting questions