Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,534 Current liabilities $29,745 Long-term assets 46,852 Long-term debt Other liabilities Equity Total 27,762 14,337 17,542 Total $89,386 $ 89,386 Locust has 667 million shares outstanding with a market price of $93 a share. Calculate the company's market value added. Calculate the market-to-book ratio. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capita contributed by shareholders?

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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Ee 47.

Here is a simplified balance sheet for Locust Farming:
Locust Farming
Balance Sheet
($ in millions)
Current assets $ 42,534 Current liabilities $29,745
Long-term assets. 46,852
Long-term debt
27,762
Other liabilities
14,337
Equity
17,542
$ 89,386
Total
$ 89,386
Locust has 667 million shares outstanding with a market price of $93 a share.
Calculate the company's market value added.
Calculate the market-to-book ratio.
Total
How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital
contributed by shareholders?
Transcribed Image Text:Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,534 Current liabilities $29,745 Long-term assets. 46,852 Long-term debt 27,762 Other liabilities 14,337 Equity 17,542 $ 89,386 Total $ 89,386 Locust has 667 million shares outstanding with a market price of $93 a share. Calculate the company's market value added. Calculate the market-to-book ratio. Total 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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