Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)...

 

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Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets Total Current liabilities Long-term debt Other liabilities Equity $ 89,374 Total $ 42,530 46,844 $ 29,749 27,758 14,329 17,538 $ 89,374 Locust has 663 million shares outstanding with a market price of $89 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders? Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets Long-term assets Total Current liabilities Long-term debt Other liabilities Equity $ 89,374 Total $ 42,530 46,844 $ 29,749 27,758 14,329 17,538 $ 89,374 Locust has 663 million shares outstanding with a market price of $89 a share. a. Calculate the company's market value added. b. Calculate the market-to-book ratio. c. How much value has the company created for its shareholders as a percent of shareholders' equity, that is, as a percent of the net capital contributed by shareholders?

Answer rating: 100% (QA)

a Market Value Added MVA Market Value of the Company Book Value of Equity Market Va... View the full answer