Suppose Caterpillar, Inc., has 658 million shares outstanding with a share price of $75.47, and $25.39 billion in debt. If in three years, Caterpillar has 697 million shares outstanding trading for $82.88 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio? The amount of debt required in three years will be $ billion. (Round to two decimal places.)
Suppose Caterpillar, Inc., has 658 million shares outstanding with a share price of $75.47, and $25.39 billion in debt. If in three years, Caterpillar has 697 million shares outstanding trading for $82.88 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio? The amount of debt required in three years will be $ billion. (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
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Transcribed Image Text:Suppose Caterpillar, Inc., has 658 million shares outstanding with a share price of $75.47, and $25.39 billion in debt. If in
three years, Caterpillar has 697 million shares outstanding trading for $82.88 per share, how much debt will Caterpillar
have if it maintains a constant debt-equity ratio?
The amount of debt required in three years will be $ billion. (Round to two decimal places.)
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