Question
In march 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36
In march 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share. GE also had cash of $13 billion and total debt $370 billion. Four year later, in early 2009 , GE had a book value of equity of $105 billion, 10.5 billion shares outstanding with a market price of $10.80 per share, cash of $48 billion, and total debt of $524 billion. Over this period, what was the change in GE's
a. market capitalization? b. market-to-book ratio? c. book debt- equity ratio? d. market debt-equity ratio? e. enterprise value?
Fundamentals of Corporate Finance (2nd Edition) chapter 2 8P : The problem(a) is that only the 2005 and 2009 data are presented. How do you get 2007? ex) books value of equity, shares, market price
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started