Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet (5 in millions) $ 42,527 Current liabilities Long-term debt 46,838 Other liabilities Equity 89,365 Total Current assets Long-term assets Total Locust has 660 million shares outstanding with a market price of $86 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? $ 29,752 27,755 14,323 17,535 $ 89,365 Complete this question by entering your answers in the tabs below. Required A Required B Required C

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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A 135.

Subject:- finance 

Here is a simplified balance sheet for Locust Farming:
Locust Farming
Balance Sheet
(5 in millions).
$ 42,527 Current liabilities
Long-term debt
46,838
Other liabilities
Equity
Current assets
Long-term assets
Total
$ 89,365 Total
Locust has 660 million shares outstanding with a market price of $86 a share.
a. Calculate the company's market value added.
b. Calculate the market-to-book ratio.
$29,752
27,755
14,323
17,535
$ 89,365
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?
Required A
Complete this question by entering your answers in the tabs below.
Required B Required C
Transcribed Image Text:Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet (5 in millions). $ 42,527 Current liabilities Long-term debt 46,838 Other liabilities Equity Current assets Long-term assets Total $ 89,365 Total Locust has 660 million shares outstanding with a market price of $86 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. $29,752 27,755 14,323 17,535 $ 89,365 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? Required A Complete this question by entering your answers in the tabs below. Required B Required C
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