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Question 4 5 pts For the most recent fiscal year, book value of long-term debt at Schlumberger was $19217 million. The market value of this
Question 4 5 pts For the most recent fiscal year, book value of long-term debt at Schlumberger was $19217 million. The market value of this long-term debt is approximately equal to its book value. Schlumberger's share price currently is $59.9. The company has 1,000 million shares outstanding. What is the market value of the company to its bondholders and shareholders? Do not round at intermediate steps in your calculation. Express your answer in millions of dollars. (Thus, for example, you would enter $120,340,000 as 120.34 in Canvas.) Round to two decimal places. Do not type the $ symbol. Advice: this problem gives you debt in millions of dollars and shares outstanding in millions of shares. If you work in millions from start to finish (rather than expanding out the numbers to dollars as you work), then you can avoid the hassle of converting back to $ millions. Question 7 7 pts You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock: $171,138 million Beta: 1.01 Yield to maturity on debt with 10 years to maturity: 2.32% You also have the following market data: Expected annual return on the market portfolio: 8% Annual risk-free rate: 1% Assume that if Home Depot issues new bonds, the bonds will have 10 years to maturity. What is the company's return on assets? Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places. Do not type the % symbol
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