Current assets Long-term assets Total $ 42,524 46,832 Current liabilities Long-term debt Other liabilities Equity $ 89,356 Total $ 29,755 27,752 14,317 17,532 $ 89,356 ocust has 657 million shares outstanding with a market price of $83 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as net capital contributed by chareholders2

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
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Current assets
Long-term assets
Total
Locust Farming
Balance Sheet
($ in millions)
$ 42,524
46,832
Current liabilities
Long-term debt
Other liabilities
Equity
$ 89,356 Total
$ 29,755
27,752
14,317
17,532
$ 89,356
Locust has 657 million shares outstanding with a market price of $83 a share.
a. Calculate the company's market value added.
b. Calculate the market-to-book ratio.
c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the
net capital contributed by shareholders?
Transcribed Image Text:Current assets Long-term assets Total Locust Farming Balance Sheet ($ in millions) $ 42,524 46,832 Current liabilities Long-term debt Other liabilities Equity $ 89,356 Total $ 29,755 27,752 14,317 17,532 $ 89,356 Locust has 657 million shares outstanding with a market price of $83 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders?
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