Calculate the company market value added

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Question - Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)

Current assets $42,539

Current liabilities $29,740

Long-term assets 46,862

Long-term debt 27,767

Other liabilities 14,347

Equity 17,547

Total $89,401 Total $89,401

Locust has 660 million shares outstanding with a market price of $98 a share.

Required -

a. Calculate the company's market value added.

b. Calculate the market-to-book ratio.

c. How much value as the company created for its shareholders as a percent of shareholders' equity, that is, the net capital contributed to the firm by its shareholders?

Reference no: EM133036119

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