How much value as the company created for its shareholders

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Question - Here is a simplified balance sheet for Locust Farming:

Locust Farming Balance Sheet ($ in millions)

Current assets $42,532

Current liabilities $29,747

Long-term assets 46,848

Long-term debt 27,760

Other liabilities 14,333

Equity 17,540

Total $89,380 Total $89,380

Locust has 665 million shares outstanding with a market price of $91 a share.

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: EM132998663

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