Mountain Peak Electronics reported a debt-to-equity ratio of 0.85 times at the end of 2023. If the firm's total debt at year-end was $42 million, how much equity does Mountain Peak have on its balance sheet? (Write the answer in millions of dollars to 2 decimal places.)
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- In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $39.4 per share, and the market price was $111.70 per share. The company's balance sheet shows that the company had $28.80 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? Note: 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? Note: 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. Markeet debt-to-value ratio c. Measure Market valueIn 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $47.0 per share, and the market price was $107.30 per share. The company's balance sheet shows that the company had $2.67 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? Note: 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? Note: 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. Markeet debt-to-value ratio c. MeasureIn 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $25.36 per share, and the market price was $153.70 per share. The company’s balance sheet shows that the company had $26.7 billion of long-term debt, which was currently selling near par value. What was Caterpillar’s book debt-to-value ratio? Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places. What was its market debt-to-value ratio? Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places. Which measure should you use to calculate the company’s cost of capital? NOTE: 0.66 (for book debt to value ratio)and 0.24 (for market debt to value ratio)is incorrect
- Karsan Otomativ had 757 million shares outstanding with a book value of $41.0 per share in 2020. The market price of a share was $93.50. Karsan Otomativ had a long term debt of $34.50 that was selling at par. a. Calculate Karsan Otomativ's book debt-to-value (D/V) ratio. (Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.) b. Calculate Karsan Otomativ's market debt-to-value (D/V) ratio. (Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.) c. Which of the above is an appropriate measure to use when determining a company's cost of capital? a. Book debt-to-value ratio b. Markeet debt-to-value ratio C. MeasureIn 2018, Caterpillar Inc. had about 658 million shares outstanding. Their book value was $33.0 per share, and the market price was $159.80 per share. The company's balance sheet shows that the company had $14.80 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?The Bouchard Company's EPS was $6.80 in 2021, up from $3.34 in 2016. The company pays out 50% of its earnings as dividends, and its common stock sells for $35.00. a. Calculate the past growth rate in earnings. (Hint: This is a 5-year growth period.) Round your answer to two decimal places. % b. The last dividend was Do = 0.50($6.80) = $3.40. Calculate the next expected dividend, D₁, assuming that the past growth rate continues. Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What is Bouchard's cost of retained earnings, rs? Do not round intermediate calculations. Round your answer to two decimal places. %
- As of the end of 2020, Microsoft had an annual net income of $51.3 Billion and total assets of $301.3 Billion. Microsoft's total book value of equity as of the end of 2020 was $118.3 Billon. Finally, Microsoft currently has 7.56 billion shares outstanding, and is priced at $243 a share. What is Microsoft's leverage, also known as its equity mulitplier (EM) (remember to use market value of equity)? 7.56 5.42 6.10 8.11Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The debt weight for the WACC calculation is __ % ? (Round to two decimal places.)Fondren Machine Tools has total assets of $3,180,000 and current assets of $882,000. It turns over Its fixed assets 1.8 times per year. Its return on sales is 5.5 percent. It has $1,410,000 of debt. What is its return on stockholders' equlty? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Return on stockholders' equity
- In early 2018, the Alfa Corporation issued new common stock at a market price of $30. Dividends last year were $2 and expected to grow at an annual rate of 3 percent forever. Flotation costs will be 4 percent of market price. What is Alfa's cost of equity for the new issue? (*You must show your calculation process as well.)A firm has the following accounts and financial data for 2020: Sales = 30000 Cost of goods sold = 3000 Accounts payable = 500 Accounts receivables = 100 Number of shares of Common stocks = 1000 Preferred stock dividends = 95 operating expenses = 700 Interest expense=200 Tax rate = 25% Current liability = 1000 PRICE IS 7 What is the firm's earnings available to common shareholders for 2020? WHAT IS THE P/E RATIO? WHAT IS THE EPSFor the next fiscal year, you forecast net income of $49,400 and ending assets of 506,900. Your firm's payout ratio is 10.6 %. Your beginning stockholders' equity is $299,600, and your beginning total liabilities are $128,200. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,500. Assume your beginning debt is $108,200. What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?
