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 $24.5 billion, 3.8 billion shares outstanding, and a market price of $16.49

image text in transcribed

In early 2015, Ford Motor (F) had a book value of equity of $24.5 billion, 3.8 billion shares outstanding, and a market price of $16.49 per share. Ford also had cash of $21.7 billion, and total debt of $119.7 billion. Three years later, in early 2018, Ford had a book value of equity of $35.2 billion, 10.1 billion shares outstanding with a market price of $11.41 per share, cash of $26.2 billion, and total debt of $157.8 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 Ford's market capitalization? The change in Ford's market capitalization was 5 billion. (Round to two decimal places.)

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

Essentials Of Corporate Financial Management

Authors: Glen Arnold

1st Edition

1405847042, 978-1405847049

More Books

Students also viewed these Finance questions

Question

Compare wages in Romania to wages in your home country.

Answered: 1 week ago

Question

Which were the causes of high employee turnover at Fomco Group?

Answered: 1 week ago