User Account

All Pages

Caterpillar book debt-to-value ratio

Assignment Help Finance Basics
Reference no: EM131099459

In 2013 Caterpillar Inc. had about 710 million shares outstanding. Their book value was $42 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $29.5 billion of long-term debt, which was currently selling near par value.

a. 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.)

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

c. Which measure should you use to calculate the company's cost of capital?

Reference no: EM131099459

Questions Cloud

Announcement of additions and deletions from the index : Recall that in the Nikkei Reconstitution case the announcement of additions and deletions from the index occurs one week before the actual change.
Why chinese parenting make children better in acdemic : Why does Chinese parenting make their children better in acdemic performance? Chinese parents in education on the severity of a considerable difference with the West. Firstly,Chinese parents think prioritize schoolwork above all else and only
Question regarding the company cost of equity : What is the company's cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
How managers can use the strategic framework presented : Review and think about the examples and anecdotes provided in the chapter that illustrate the major ideas being conveyed. Consider the various methods of performance appraisal presented. How can a manager ensure that they are implementing all of t..
Caterpillar book debt-to-value ratio : 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.)
Time value of money for calculating payback period : Your suggested point must not be mentioned in the book. For example, do not say that use time value of money for calculating payback period because that is discounted payback period already discussed in the book.
Announcements concerning its common stock today : Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.26 a share. Secondly, the company announced that all future dividends will increase by 4% annually..
Rate of return is built into the annuity : Your girlfriend just won the Florida lottery. She has the choice of $16,600,000 today or a 20-year annuity of $1,050,000, with the first payment coming one year from today. What rate of return is built into the annuity?
Perform a swot analysis on your client product : Product - Kellogg's Special K Cereal. Perform a SWOT analysis on your client's product. Develop a survey of at least 5 questions to probe for customer feedback

Reviews

Write a Review

Finance Basics Questions & Answers

  Kristi is considering an investment that will pay 5000 a

kristi is considering an investment that will pay 5000 a year for 7 years starting one year from today. how much should

  What does it mean to be at the optimal capital structure

what does it mean to be at the optimal capital structure? what is optimized? what is maximized and what is

  How much would he have after the same three time periods

how much would he have after the same three time periods? use the money in motion calculator to calculate each amount and comment on the differences over time.

  Amount of quarterly payments on the loan

If the first payment is due within three months (one quarter) after buying the car , what is the amount of quarterly payments on the loan will be Sue?

  Milwaukee surgical supplies inc sell on term of 310 net 30

milwaukee surgical supplies inc. sell on term of 310 net 30 gross sales for the year are 1200000and the collections

  Entrepreneurs want to value their companies as low as they c

Entrepreneurs want to value their companies as low as they can for stock option purposes, but as high as they can when they are attempting to raise capital. Analyze how often this statement may be true. Provide an example to support your response. Ta..

  Assume that you would normally not carry any bank balance

1. community hospital has annual net patient revenues of 150 million. at the present time payments received by the

  When do you think a research is marketing research discuss

when do you think a research is marketing research? discuss the marketing research as a separate field of research in

  What is the firm intrinsic value today

Hart Enterprises recently paid a dividend, D0, of $4.00. It expects to have nonconstant growth of 14% for 2 years followed by a constant rate of 7% thereafter. The firm's required return is 14%.

  Disadvantages of utilizing debt in a firm capital structure

What are the major advantages and disadvantages of utilizing debt in a firm's capital structure (the proportion/mix of debt and equity in balance sheet)?

  Aa is a pharmaceutical company and plants

AA is a pharmaceutical company and plants to               adopt a stock splits by giving

  Calculating the wacc for a subsidiary valuation

Which capital structure should we consider when calculating the WACC for a subsidiary valuation: the one that is reasonable according to the risk of the subsidiary's business, the average of the company or the one the subsidiary "tolerates/permits"?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd