1.Market Value Added. Here is a simplified balance sheet for Caterpillar Tractor:Current assets$42,524Current liabilities$29,755Long-term assets46,832Long-term debt27,752Other liabilities14,317Equity17,532$89,356Total$89,356TotalCaterpillar has 657 million shares outstanding with a market price of $83 a share. (LO4-1)a. Calculate the company's market value added.b. Calculate the market-to-book ratio.c. Has the company created value for shareholders?

Market value is the product of number of shares and market price.

1. Market Value Added. Here is a simplified balance sheet for Caterpillar Tractor: Current assets $42,524 Current liabilities $29,755 Long-term assets Long-term debt 27,752 14,317 46,832 Other liabilities 17,532 $89,356 Equity Total $89,356 Total Caterpillar has 657 million shares outstanding with a market price of $83 a share. (LO4-1) a. Calculate the company's market value added. b. Calculate the market-to-book ratio.

1. Market Value Added. Here is a simplified balance sheet for Caterpillar Tractor: Current assets $42,524 Current liabilities $29,755 Long-term assets Long-term debt 27,752 14,317 46,832 Other liabilities 17,532 $89,356 Equity Total $89,356 Total Caterpillar has 657 million shares outstanding with a market price of $83 a share. (LO4-1) a. Calculate the company's market value added. b. Calculate the market-to-book ratio.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume Skyler Industries has debt of $4,074,000 with a cost of capital of 7.3% and equity of $5,626,000 with a cost of capital of 10.0%. What is Skyler’s weighted average cost of capital? Round your intermediate calculations and final answer to 3 decimal places. fill in the blank %
Calculate the equity multiplier (total assets / total equity) for the firm below. Make sure you do NOT convert your answer and keep 2 decimals for your final answer.....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct. Sales $5,000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 5000 Total Equity 1400
Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
mni.2
Assume Skyler Industries has debt of $4,398,941with a cost of capital of 9% and equity of $5,435,265 with a cost of capital of 6.1%. What is Skyler’s weighted average cost of capital for debt? Round to the nearest hundredth, two decimal places and submit the answer in a percentage.
2.The Moon Company had net income in 2022 of AED 40 million. Here are some of the financial ratios from the annual report. Return on Assets = 5% Debt Assets Ratio = 55% Profit Margin = 4.5% Inventory in days = 20 days Using these ratios, calculate the following for the Remal Company: a) Salesb) Total assetsc) Total asset turnover d) Total debte) Stockholders' equity f) Return on equityg) Inventory
I need help solving FCFE and Cash Flow per Share. See below and advise. All in MM. Exploration Expense: -12.8 Asset Retirement Obligation Accretion: -6.0 Depreciation, Depletion and Amortization: -378.9 Working Capital (Increase) / Decrease: (30.0) Capital Expenditures: 156.1 Net Debt: -11.0 Number of Shares Outstanding: 251
Assume Skyler Industries has debt of $4,775,777with a cost of capital of 7.8% and equity of $5,798,398 with a cost of capital of 9.6%. What is Skyler’s weighted average cost of capital for equity? Round to the nearest hundredth, two decimal places and submit the answer in a percentage.

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