In 2013 Caterpillar Inc. had about 648 million shares outstanding. Their book value was $27 per share, and the market price was $83.50 per share. The company's balance sheet shows that the company had $25.7 billion of long- term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? b. What was its market debt-to-value ratio?
In 2013 Caterpillar Inc. had about 648 million shares outstanding. Their book value was $27 per share, and the market price was $83.50 per share. The company's balance sheet shows that the company had $25.7 billion of long- term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? b. What was its market debt-to-value ratio?
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1STP
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General Accounting No 1
![In 2013 Caterpillar Inc. had about 648 million shares
outstanding. Their book value was $27 per share, and the
market price was $83.50 per share. The company's balance
sheet shows that the company had $25.7 billion of long-
term debt, which was currently selling near par value.
a. What was Caterpillar's book debt-to-value ratio?
b. What was its market debt-to-value ratio?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eb89e97-1599-40a2-865b-c85464ab9e47%2Fa33b43f9-f711-4da7-9403-e3f7cde02bfb%2F1cnoaz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In 2013 Caterpillar Inc. had about 648 million shares
outstanding. Their book value was $27 per share, and the
market price was $83.50 per share. The company's balance
sheet shows that the company had $25.7 billion of long-
term debt, which was currently selling near par value.
a. What was Caterpillar's book debt-to-value ratio?
b. What was its market debt-to-value ratio?
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