Suppose Caterpillar, Inc., has 671 million shares outstanding with a share price of $72.97, and $25.71 billion in debt. If in three years, Caterpillar has 700 million shares outstanding trading for $83.96 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio? Question content area bottom Part 1 The amount of debt required in three years will be $enter your response here billion. (
Suppose Caterpillar, Inc., has 671 million shares outstanding with a share price of $72.97, and $25.71 billion in debt. If in three years, Caterpillar has 700 million shares outstanding trading for $83.96 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio? Question content area bottom Part 1 The amount of debt required in three years will be $enter your response here billion. (
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
Related questions
Question
Suppose Caterpillar, Inc., has
671
million shares outstanding with a share price of
$72.97,
and
$25.71
billion in debt. If in three years, Caterpillar has
700
million shares outstanding trading for
$83.96
per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio?Question content area bottom
Part 1
The amount of debt required in three years will be
$enter your response here
billion. (AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education