What was book debt-to-value ratio

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Reference no: EM131187918

In 2013 Caterpillar Inc, had about 651 million shares outstanding. Their book value was $30 per share, and the market price was $85.00 per share. The company's balance sheet shows that the company had $22.7 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)

book value ___________

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)

market value_________

c. which measure should you use to calculate the company's cost of capital? (book value or market value)

Reference no: EM131187918

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