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
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
Problem 1PS
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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A 135.
Subject:- finance
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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