Maintains a constant? debt-equity ratio

Assignment Help Financial Management
Reference no: EM131523280

Suppose? Caterpillar, Inc., has 651 million shares outstanding with a share price of $72.29, and $24.32 billion in debt. If in three? years, Caterpillar has 699 million shares outstanding trading for $86.33 per? share, how much debt will Caterpillar have if it maintains a constant? debt-equity ratio?

Reference no: EM131523280

Questions Cloud

What was your total return for past year : You purchased a zero-coupon bond one year ago for $285.33. what was your total return for the past year?
Maturity that pays semi-annual interest : Consider a $1,000 face value 6% coupon bond with 3 years left to maturity that pays semi-annual interest.
How much new long-term debt financing will be needed : What was Wallace's total long-term debt in 2016? How much new long-term debt financing will be needed in 2017?
Use the afn equation to forecast broussards additional fund : Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Maintains a constant? debt-equity ratio : how much debt will Caterpillar have if it maintains a constant? debt-equity ratio?
Discuss how studies on rates of return to education : Using suitable examples discuss how studies on rates of return to education have influenced the Kenyan government investment decisions in basic
How much will she to save each month to reach her goal : If she saves money every month, starting one month from now, how much will she to save each month to reach her goal?
In terms of negotiated financing requirements : In terms of negotiated financing requirements, what is the annual cost of Roche Publishing Company’s operational inefficiency?
What is minimum continuously compounded interest rate : What is the minimum continuously compounded interest rate that could be acceptable to this investor for this loan?

Reviews

Write a Review

Financial Management Questions & Answers

  What was boatmens real rate of return in percents

Last year, Boatmen of River Styx earned a rate of return of 14.85 percent on their bond investments. During that time, the inflation rate was 6.71 percent. What was Boatmen's real rate of return (in percents)?

  Exercise price and expiration date as call option

The current price of a stock is $33, and the annual risk-free rate is 7%. A call option with a strike price of $32 and 1 year until expiration has a current value of $7.20. What is the value of a put option written on the stock with the same exercise..

  Monthly loan payment

(Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,699. If you could borrow that amount from Carl's Credit Union at 6% for 1 year, what would be your monthly loan payments?

  What is the current market value of the bond

Rick bought a bond when it was issued by Macroflex Corporation 14 years ago. The bond, which has a $1000 face value and a 10% coupon rate, matures in six years. Interest is paid annually; the next interest payment is scheduled for one year from today..

  Repay the loan by making equal monthly payments

repay the loan by making equal monthly payments. What will your monthly payment be?

  About the compute future value

Compute the future value in year 7 of a $3,700 deposit in year 1 and another $3,200 deposit at the end of year 4 using a 8 percent interest rate.

  Find the projects NPV-IRR and MIRR

Assume you are the owner and operator of a textile manufacturer. You must evaluate the proposal of buying a new machine for your factory. The company has already spent $5,000 investigating the feasibility of using the machine. How should the $5,000 s..

  What is the most challenging aspect of finance manager

What is the most challenging aspect of finance manager? What are the biggest stressors in your work life? How do you deal with them? Does the organization provide any form of assistance?

  Use multiple techniques of project evaluation

Why must corporate managers use multiple techniques of project evaluation? Which technique is most commonly used and why? Describe several ways you may be able to use the techniques above as you progress in your professional career.

  Compute roe using financial information

Compute ROE using financial information provided in the balance sheet and income statement. Do not use ROE = PM x AT x FL. (Do not round until your final answer. Round your answer to two decimal places.)

  Market to purchase new automobile

You are in the market to purchase a new automobile. Marginal Deal , Inc. will give you $500 off the list price on a $10,000 Porsche deal. Consider the following historical events relating to your automobile purchase. You can get the same care from Gr..

  What was the net profit on the call option

XYZ sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume XYZ did not obtain Canadian dollars until the option was exercised. Also assume that ther..

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!

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