Question: In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80

In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total debt of $524 billion. Three years later, in early 2012, GE had a book value of equity of $116 billion, 10.6 billion shares outstanding with a market price of $17 per share, cash of $84 billion, and total debt of $410 billion. Over this period, what was the change in GE’s
a. market capitalization?
b. market-to-book ratio?
c. enterprise value?

Step by Step Solution

★★★★★

3.38 Rating (164 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a 2009 Market Capitalization 105 billion shares 1080share 1134 billion 2012 Market Capital... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

317-B-C-F-G-F (199).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

In early 2012, General Electric (GE) had a book value of equity of $116 billion, 10.6 billion shares outstanding, and a market price of $17 per share. GE also had cash of $84 billion, and total debt...

In June 2007, General Electric (GE) had a book value of equity of $117 billion, 10.3 billion shares outstanding, and a market price of $38.00 per share. GE also had cash of $16 billion, and total...

In April 2013, General Electric (GE) had a book value of equity of $123 billion, 10.3 billion shares outstanding, and a market price of $23 per share. GE also had cash of $90 billion, and total debt...

3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S...

In early 2009, General Electric (GE) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GE also had cash of $48 billion, and total...

In early 2009, General Holdings (GH) had a book value of equity of $105 billion, 10.5 billion shares outstanding, and a market price of $10.80 per share. GH also had cash of $48 billion, and total...

Payne Inc. expects more than 86% of their customers will contribution to their donation bank. To test this expectation, 120 customers were observed and 108 of them contributed to the donation bank....

A 38-year-old woman complains of cold, painful fingertips, as well as difficulty swallowing and indigestion. Physical examination is remarkable for a thickened, shiny epidermis over the entire body,...

How will each of the following affect the opportunity cost or benefit of holding cash? Explain. a. Merchants charge a 1% fee on debit/credit card transactions for purchases of less than $50. b. To...

Why would you want to know the yield to maturity of a bond?

Assume that United Kingdom and U.S. engage in a significant trade relationship. You are told that the British government imposes quotas on imports by British companies and that U.S. consumers can...

Roxy Broadcasting was originally an all-equity firm with a before-tax value of $10,000,000. Roxy now pays taxes at a 30% rate. What is the value of Roxy under the 30/70 debt to equity capital...

Watching TV: The 2012 general Social Survey asked a large number of people how much time they spent watching TV each day. The mean number of hours was 3.09 with a standard deviation of 2.96. Assume...