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What was caterpillar book debt-to-value ratio

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Reference no: EM133013598

Question - In 2018, Caterpillar Inc. had about 654 million shares outstanding. Their book value was $29.0 per share, and the market price was $157.80 per share. The company's balance sheet shows that the company had $18.80 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 measure should you use to calculate the company's cost of capital?

Reference no: EM133013598

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