b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) 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
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b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.)
Market-to-book ratio
c. How much value as the company created for its shareholders as a percent of shareholders' equity, that is, the net capital contributed
to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)
Increase in value of equity
%
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Transcribed Image Text:A https://ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser%3D0&launchUrl%=https%253AS *** NECT Problems Saved Help Save & Ex Che |Market vaiue aadea |milion b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio c. How much value as the company created for its shareholders as a percent of shareholders' equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.) Increase in value of equity % { Prev 5 of 8 Next > arch W
Financial -nal ziz and -ppl
Question 5- M1 CONNECT Problen X
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T Problems
Saved
Here is a simplified balance sheet for Locust Farming:
Locust Farming
Balance Sheet
($ in millions)
$ 42,542
Current assets
Current liabilities
$29,737
27,770
14,353
17,550
Long-term assets
46,868
Long-term debt
Other liabilities
Equity
Total
$ 89,410
Total
$89,410
Locust has 663 million shares outstanding with a market price of $101 a share.
a. Calculate the company's market value added. (Enter your answers in million
Market value
million
Market value added
million
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Transcribed Image Text:Financial -nal ziz and -ppl Question 5- M1 CONNECT Problen X https://ezto.mheducation.com/ext/map/index.html?_con%3Dcon&external_browse T Problems Saved Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) $ 42,542 Current assets Current liabilities $29,737 27,770 14,353 17,550 Long-term assets 46,868 Long-term debt Other liabilities Equity Total $ 89,410 Total $89,410 Locust has 663 million shares outstanding with a market price of $101 a share. a. Calculate the company's market value added. (Enter your answers in million Market value million Market value added million Prev 5 of 8
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