In 2018, Caterpillar Inc. had about 655 million shares outstanding. Their book value was $30.0 per...

In 2018, Caterpillar Inc. had about 655 million shares outstanding. Their book value was $30.0 per share, and the market price was $158.30 per share. The company’s balance sheet shows that the company had $17.80 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar’s book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) c. Which measure should you use to calculate the company’s cost of capital?

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In 2018, Caterpillar Inc. had about 665 million shares outstanding. Their book value was $37.0 per...

In 2018, Caterpillar Inc. had about 665 million shares outstanding. Their book value was $37.0 per share, and the market price was $152.80 per share. The company’s balance sheet shows that the company had $28.50 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar’s book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate...

In 2018, Caterpillar Inc. had about 654 million shares outstanding. Their book value was $29.0 per...

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? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.) b. What was its market debt-to-value ratio? (Do not round intermediate...

Filer Manufacturing has 8.3 million shares of common stock outstanding with book value of $4 per...

Filer Manufacturing has 8.3 million shares of common stock outstanding with book value of $4 per share. The firm just paid a $2 dividend per share and will not pay any dividend in the next five years, after which the firm starts to pay an annual dividend of $ 4 per share forever. The company also has a bond issue outstanding with a total face value of $70 million. Each bond has a face value of $1,000, a coupon rate...

Company X has 2 million shares of common stock outstanding at a book value of $1...

Company X has 2 million shares of common stock outstanding at a book value of $1 per share. The stock is currently priced at $5.00 per share. The company also has $2 million in face value of debt, with exactly 15 years remaining until maturity and a coupon rate of 10% paid semiannually. The yield to maturity on the bonds is 12%. What is the weight of debt capital to be used in calculating the firm’s weighted average cost of...

A company has a Book Value of 10,000,000 with 500,000 shares outstanding. What is book value...

A company has a Book Value of 10,000,000 with 500,000 shares outstanding. What is book value per share? 1,000 shares have just been sold in the secondary market at 25/share. What is the company’s Market Value and market value per share? At day’s end the company issues 20,000 new shares at a price of 24/share. At that point what is the company’s market value & market value/share; and its book value & book value/share?

About Caterpillar Inc. The following is derived from the Caterpillar Inc. website: Caterpillar Inc. is a...

About Caterpillar Inc. The following is derived from the Caterpillar Inc. website: Caterpillar Inc. is a leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Caterpillar’s enterprise strategy focuses on solutions to help customers build a better world and allows the company to deliver profitable growth for their shareholders. The company’s corporate governance program ensures they serve the interests of stockholders and other stakeholders with the highest standards of responsibility, integrity,...

Book Co. has 1.7 million shares of common equity with a par (book) value of $1.45, retained earnings of $30.1 million, and its shares have a market value of $48.59 per share.

Book Co. has 1.7 million shares of common equity with a par (book) value of $1.45, retained earnings of $30.1 million, and its shares have a market value of $48.59 per share. It also has a debt with a par value of $21.1 million that is trading at 101% of par.a. What is the market value of its equity?b. What is the market value of its debt?c. What weights should it use in computing its WACC?

a. At the end of 2015 Sylvan Inc. had 1,250,000 common shares outstanding, with market-to-book (M/B)...

a. At the end of 2015 Sylvan Inc. had 1,250,000 common shares outstanding, with market-to-book (M/B) ratio of 1.5 , Sylvan's 2015 Balance sheet had total assets of $60 millions and total liabilities (current and long-term) of $35 millions. What was Sylvan's Market Value Added in 2015? b. At the end of 2015, XYZ Corp. had total assets of $8.5 million, Operating Margin of 16% and a Total Assets Turnover Ratio of 2.5 . In 2015, the company used $...

On December 31, 2020, Ainsworth, Inc., had 600 million shares of common stock outstanding. Sixteen million...

On December 31, 2020, Ainsworth, Inc., had 600 million shares of common stock outstanding. Sixteen million shares of 7%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2021. No cash dividends were declared in 2021. For the year ended December...

On December 31, 2020, Ainsworth, Inc., had 460 million shares of common stock outstanding. Seventeen million...

On December 31, 2020, Ainsworth, Inc., had 460 million shares of common stock outstanding. Seventeen million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury stock. Twelve million treasury shares were sold on August 31. Ainsworth issued a 5% common stock dividend on June 12, 2021. No cash dividends were declared in 2021. For the year ended December...

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