In early 2015, Ford Motor (F) had a book value of equity of $24.3 billion, 4.1 billion shares outstanding, and a market price of $15.78 per share. Ford also ha $21.6 billion, and total debt of $118.3 billion. Three years later, in early 2018, Ford had a book value of equity of $34.7 billion, 10.7 billion shares outstandin market price of $10.53 per share, cash of $26.1 billion, and total debt of $154.4 billion. Over this period, what was the change in Ford's a. market capitalization? b. market-to-book ratio? c. enterprise value? a. Over the 3-year period, what was the change in Ford's market capitalization? The change in Ford's market capitalization was $ b. Over the 3-year period, what was the change in The change in Ford's market-to-book ratio was c. Over the 3-year period, what was the change in Ford's enterprise value? The change in Ford's enterprise value was $ billion. (Round to two decimal places.) billion. (Round to two decimal places.) Ford's market-to-book ratio? (Round to two decimal places.)

In early 2015, Ford Motor (F) had a book value of equity of $24.3 billion, 4.1 billion shares outstanding, and a market price of $15.78 per share. Ford also ha $21.6 billion, and total debt of $118.3 billion. Three years later, in early 2018, Ford had a book value of equity of $34.7 billion, 10.7 billion shares outstandin market price of $10.53 per share, cash of $26.1 billion, and total debt of $154.4 billion. Over this period, what was the change in Ford's a. market capitalization? b. market-to-book ratio? c. enterprise value? a. Over the 3-year period, what was the change in Ford's market capitalization? The change in Ford's market capitalization was $ b. Over the 3-year period, what was the change in The change in Ford's market-to-book ratio was c. Over the 3-year period, what was the change in Ford's enterprise value? The change in Ford's enterprise value was $ billion. (Round to two decimal places.) billion. (Round to two decimal places.) Ford's market-to-book ratio? (Round to two decimal places.)

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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Based on the corporate valuation model, SG Telecom's total corporate value is $750 million. Its balance sheet shows $100 million notes payable, $200 million of long-term debt, $40 million of common stock, and $160 million of retained earnings, with a WACC of 10%. If the company has 24 million shares of stock outstanding, what is its price per share? Your answer should be between 5.03 and 58.72, rounded to 2 decimal places, with no special characters.
Edelman engines has $18 million in total assets. It’s balance sheet shows $2 million in current liabilities $10 million in long term debt and $6 million in common equity. It has 300000 common shares outstanding and it’s stock price is $28.20 per share. What is edelmans market / book ratio
In 2018, Caterpillar Inc. had about 710 million shares outstanding. Their book value was $38.0 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $29.50 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company's cost of capital? a. Book debt-to-value ratio b. C. Markeet debt-to-value ratio Measure
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case? Calculate the new EPS for 2016-2019 below: (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)
Book Co. has 1.7 million shares of common equity with a par (book) value of $1.45, retained earnings of $28.4 million, and its shares have a market value of $49.09 per share. It also has debt with a par value of $19.6 million that is trading at 105% of par. a. What is the market value of its equity? b. What is the market value of its debt? c. What weights should it use in computing its WACC? a. What is the market value of its equity? The market value of the equity is $ __ million (Round to two decimal places.) b. What is the market value of its debt? The market value of the debt is $ __ million. (Round to two decimal places.) c. What weights should it use in computing its WACC? The debt weight for the WACC calculation is __ % ? (Round to two decimal places.) The equity weight for the WACC calculation is __ % ? (Round to two decimal places.)
Raleigh Racers has $17 billion in total assets. Its balance sheet shows $3 billion in current liabilities, $5 billion in long-term debt, and $9 billion in common equity. It has 750 million shares of common stock outstanding, and its stock price is $33 per share. What is Raleigh’s market-to-book ratio? a. 1.13 b. 2.75 c. 3.67 d. 1.94 e. 1.46
Starbucks reports net income for 2015 of $2,956.4 million. Its stockholders' equity is $6,527 million and $7,073 million for 2014 and 2015, respectively. a. Compute its return on equity for 2015.Round answer to one decimal place (ex: 0.2345 = 23.5%)Answer% b. Starbucks repurchased over $1.4 billion of its common stock in 2015. Did this repurchase increase or decrease Starbucks’ ROE? ROE usually decreases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares reduces the denominator (avg. stockholders' equity). ROE usually increases since the repurchase of shares increases the denominator (avg. stockholders' equity). ROE usually decreases since the repurchase of shares increases the denominator (avg. stockholders' equity). c. If Starbucks had not repurchased common stock in 2015, what would ROE have been? Note: Round answer to one decimal place (example: 20.6%). Answer%
Marjorie Manufacturing's balance sheets report $250 million in total debt, $100 million in short-term investments, and $8 9 million in preferred stock. Marjorie has 13 million shares of common stock outstanding. A financial analyst estimated that Marjorie's value of operations is $900 million. What is the analyst's estimate of the intrinsic stock price per share?

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