Question: Problem 4-1 Market Value Added (LO1) Here is a simplified balance sheet for Locust Farming: Locust Farming Current assets Long-term assets Total Balance Sheet

Problem 4-1 Market Value Added (LO1) Here is a simplified balance sheet for Locust Farming: Locust Farming Current assets Long-term assets Total Balance Sheet

Problem 4-1 Market Value Added (LO1) Here is a simplified balance sheet for Locust Farming: Locust Farming Current assets Long-term assets Total Balance Sheet ($ in millions) $ 42,529 46,842 Current liabilities Long-term debt $29,750 27,757 Other liabilities. 14,327 Equity $ 89,371 Total 17,537 $ 89,371 Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio Locust has 662 million shares outstanding with a market price of $88 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market value Market value added million million b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) Market-to-book ratio c. How much value as the company created for its shareholders as a percent of shareholders' equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.) Increase in value of equity %

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