In 2020, Caterpillar Incorporated had about 740 million shares outstanding. Their book value was $34.0 per share,
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In 2020, Caterpillar Incorporated had about 740 million shares outstanding. Their book value was $34.0 per share, and the market price was $144.30 per share. The company's balance sheet shows that the company had $4.67 billion of long-term debt, which was currently selling near par value.
What was Caterpillar's book debt-to-value ratio?
Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.
What was its market debt-to-value ratio?
Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.
Which measure should you use to calculate the company's cost of capital?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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