Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in millions) Current liabilities 46,838 Long-term debt Current assets $42,527 Long-term assets Total Other liabilities Equity $89,365 Total Market value Market value added Caterpillar has 660 million shares outstanding with a market price of $86 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Yes No $29,752 27,755 14,323 17,535 $89,365 GA million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio c. Has the company created value for shareholders?

Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in millions) Current liabilities 46,838 Long-term debt Current assets $42,527 Long-term assets Total Other liabilities Equity $89,365 Total Market value Market value added Caterpillar has 660 million shares outstanding with a market price of $86 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Yes No $29,752 27,755 14,323 17,535 $89,365 GA million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio c. Has the company created value for shareholders?

Name: Here is a simplified balance sheet for Caterpillar Tractor:Caterpilla
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Description: Here is a simplified balance sheet for Caterpillar Tractor:Caterpillar TractorBalance Sheet($ in millions)Currentliabilities46,838 Long-term debtCurrent assets $42,527Long-termassetsTotal$89,365 TotalMarket valueMarket valueaddedOther liabilitiesEqu

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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Two online magazine companies reported the following in their financial statements: Outdoor Fun BetterWorth 2020 $ 171,173 417,049 2.98 57.20 2021 2020 $ 105,000 537,186 1.80 52.40 2021 $ 85,500 397,151 1.10 30.05 $ 107,604 462,814 Net income Total stockholders' Earnings per share Stock price when annual results reported equity 2.19 48.54 Required: 1-a. Compute the 2021 ROE for each company. 1-b. Which company appears to generate greater returns on stockholders' equity in 2021? 2-a. Compute the 2021 P/E ratio for each company. 2-b. Which company do investors appear to value more? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the 2021 ROE for each company. (Round your answers to 1 decimal place.) ROE Outdoor Fun % BetterWorth %
(Market value analysis) Lei Materials' balance sheet lists total assets of $1.17 billion, $197 million in current liabilities, $435 million in long-term debt, $538 million in common equity, and 50 million shares of common stock. If Lei's current stock price is $54.48, what is the firm's market-to-book ratio? The market-to-book ratio is (Round to two decimal places.)
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Calculate the weights of capital components based on the book value balance sheet. weight of debt: Wd weight of preferred stock: Wp weight of total common equity: We Here is the condensed 2015 balance sheet for Skye Computer Company (in thousands of dollars): CONDENSED BALANCE SHEET FOR SKYE COMPUTER COMPANY FY2015 Current assets $2,000 Net fixed assets 3,000 Total assets $5,000 Total debt $2,100 Preferred stock 250 Common stock 1,300 Retained earnings 1,350 Total common equity $2,650 Total liabilities & equity $5,000 The firm's marginal tax rate is 35%. The firm's currently outstanding 10% annual coupon rate long-term debt sells at $1,051.11. The debt matures in 7 years. Coupon interest is paid semiannually. Skye's preferred stock pays a dividend of $3.30 per share, and its preferred stock sells for $30 per share. Skye's earnings per share…
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The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value per share\times total shares outstanding) of $1,358,000. Furthermore, the firm's income statement for the year just ended has a net income of $577, 000, which is $ 0.321 per share of common stock outstanding. The price - earnings ratio for firms similar to Underwood Motors is 21.33. a. What price would you expect Underwood Motors shares to sell for? b. What is the book value per share for Underwood's shares?
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