Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,524 Current liabilities $ 29,755 Long-term assets 46,832 Long-term debt 27,752 Other liabilities 14,317 Equity 17,532 Total $ 89,356 Total $ 89,356 Locust has 657 million shares outstanding with a market price of $83 a share. c. How much value as the company created for its shareholders as a percent of shareholders’ equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,524 Current liabilities $ 29,755 Long-term assets 46,832 Long-term debt 27,752 Other liabilities 14,317 Equity 17,532 Total $ 89,356 Total $ 89,356 Locust has 657 million shares outstanding with a market price of $83 a share. c. How much value as the company created for its shareholders as a percent of shareholders’ equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Here is a simplified
| Locust Farming | |||||||
| Balance Sheet | |||||||
| ($ in millions) | |||||||
| Current assets | $ | 42,524 | Current liabilities | $ | 29,755 | ||
| Long-term assets | 46,832 | Long-term debt | 27,752 | ||||
| Other liabilities | 14,317 | ||||||
| Equity | 17,532 | ||||||
| Total | $ | 89,356 | Total | $ | 89,356 | ||
Locust has 657 million shares outstanding with a market price of $83 a share.
c. How much value as the company created for its shareholders as a percent of shareholders’ equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)
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