User Account

All Pages

What was caterpillar book debt-to-value ratio

Assignment Help Finance Basics
Reference no: EM132392783

In 2015, Caterpillar Inc. had about 582 million shares outstanding. Their book value was $27.30 per share, and the market price was $71.50 per share. The company's balance sheet shows that the company had $25.2 billion of long-term debt, which was currently selling near par value.

a. What was Caterpillar's book debt-to-value ratio?

b. What was its market debt-to-value ratio?

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

Reference no: EM132392783

Questions Cloud

What is pei intrinsic value : Investors require a 12% return on PEI. What is PEI's intrinsic value?
Calculate the net present value of the loan : Daniel Kaffe, CFO of Kendrick Enterprises, is evaluating a 10-year, 6.00 percent loan with gross proceeds of $6,030,000.
What is the cost of equity of a company : What is the cost of equity of a company whose shares are trading at 30.2 and which pays a dividend of 5 over five years and 6 after five years?
Are some school-aged children more likely to bully others : Are some school-aged children more likely to bully others? Compare two nominal level variables from the National Survey of Children's Health.
What was caterpillar book debt-to-value ratio : a. What was Caterpillar's book debt-to-value ratio? b. What was its market debt-to-value ratio?
Arithmetic and geometric growth rates : If the stock currently sells for $68, what is your best estimate of the company's cost of equity capital using arithmetic and geometric growth rates?
Calculate the payback period and npv : You're asked to assess whether your corporation should invest in a long-term capital project. You calculate the payback period and NPV.
Determine rate for loan : Determine Rate for Loan. A friend promises to pay you $700 two years from now if you loan $500 today. What annual rate is your friend offering you?
Explain the concept of time value of money : Explain the concept of time value of money in the context of simple interest. How would you use this in retirement planning?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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