In 2013 Caterpillar Inc. had about 655 million shares outstanding. Their book va

Question

In 2013 Caterpillar Inc. had about 655 million shares outstanding. Their book value was $34 per share, and the market price was $87.00 per share. The company’s balance sheet shows that the company had $18.7 billion of long-term debt, which was currently selling near par value.

What was Caterpillar’s book debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.)

What was its market debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.)

In 2013 Caterpillar Inc. had about 655 million shares outstanding. Their book value was $34 per share, and the market price was $87.00 per share. The company’s balance sheet shows that the company had $18.7 billion of long-term debt, which was currently selling near par value.

Explanation / Answer

What was Caterpillar’s book debt-to-value ratio? Ans) Total Outstanding Shares = 655 Million 10,00,000 655000000 Their book value was = $                                 34 Market Price of the Share = $                                 87 Book Value of Share = $        22,270,000,000 $            655,000,000 debt = 18.7 Billion $        1,000,000,000 $        18,700,000,000 Market Value of Share = $        56,985,000,000 Book Value of Share debt and Value Ratio = debt/Book Value = 18700000000/22270000000 = 84% Book value = $        22,270,000,000 On Market Value Basice debt and Value Ratio = Debt/Market Value = 18700000000/56985000000 = 33% Market Value = $        56,985,000,000

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.