The December 31, 2018, partial balance sheet of 3M Company follows (amounts in millions, except share and per share amounts). YCharts.com reported that the total market capitalization of 3M was $108.46 billion and its stock price was $190.54 as of December 31, 2018. Also, YCharts.com estimates its total enterprise value at $119.84 billion, and its market beta at 1.14. 3Ms average pretax borrowing cost is 2.07%, and its assumed statutory tax rate is 21%. Assume that the risk-free rate equals 2.1% and the market premium equals 5%.

Liabilities Current liabilities Short-term borrowings and current portion of long-term debt $1,211 Accounts payable 2,266 Accrued payroll 749 Accrued income taxes 243 Other current liabilities 2,775 Total current liabilities 7,244 Long-term debt 13,411 Pension and post-retirement benefits 2,987 Other liabilities 3,010 Total liabilities 26,652 Equity 3M Company shareholders' equity: Common stock,par value $0.01 per share Shares outstanding-2018: 576,575,168 $ 9 Additional paid-in capital 5,643 Retained earnings 40,636 Treasury stock (29,626) Accumulated other comprehensive income (loss) (6,866) Total 3M Company shareholders' equity 9,796 Noncontrolling interest 52 Total equity 9,848 Total liabilities and equity $36,500 (a) Verify Ycharts.com's computation of 3M's market capitalization using the data from its financial report excerpts above. (Round your answer to two decimal places.) Market capitalization = $Answer 190.54

x Answer 576,575,168

shares = $Answer 109.86

billion

(b) Compute the book value of 3M's long-term debt as of December 31, 2018. $Answer 13,411

million

(c) Compute the market value of 3M's debt using the data from Ycharts.com. (Round your answer to two decimal places.) $Answer 9.98

billion