Problem $4-1$ Market Value Added $($LO$1)$

Here is a simplified balance sheet for Locust Farming:

Locust Farming

Balance Sheet

$($$ in millions$)$

Current assets $ $42,526$ Current liabilities $ $29,753$

Long$-$term assets $46,836$ Long$-$term debt $27,754$

Other liabilities $14,321$

Equity $17,534$

Total $ $89,362$ Total $ $89,362$

Locust has $659$ million shares outstanding with a market price of $$85$ a share.

Calculate the company$$s market value added.

Calculate the market$-$to$-$book ratio.

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?