In: Finance
In December 2015, General Electric (GE) had a book value of equity of $97.8 billion,9.6 billion shares outstanding, and a market price of $30.27 per share. GE also had cash of $101.6 billion, and total debt of $199.6 billion.
a. What was GE's market capitalization? What was GE's market-to-book ratio?
b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?
c. What was GE's enterprise value?
1. Market capitalisation=(number of shares X market value per share)=(9.6*30.27)= $290.592 Billions.
B. Market to book ratio= (total market capitalisation / book value)= (290.52/97.8)=2.97 times.
2. Book Debt equity ratio= (debt values / booksbyweight lieu of equity)= (199.6/97.8)=2.040 times.
Market debt equity ratio= (199.6/290.592)=.6868 times.
3. Enterprise value=(market capitalisation + debt -cash)= (199.6+290.592-101.6)= $388.592 Billions.