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

Problem 4-1 Market Value Added (LO1)

Here is a simplified balance sheet for Locust Farming:

Locust Farming
Balance Sheet
($ in millions)
Current assets $ 42,533 Current liabilities $ 29,746
Long-term assets 46,850 Long-term debt 27,761
Other liabilities 14,335
Equity 17,541
Total $ 89,383 Total $ 89,383

Locust has 666 million shares outstanding with a market price of $92 a share.

a. Calculate the companys market value added. (Enter your answers in millions.)

b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.)

c. How much value has the company created for its shareholders as a percent of the investment of the equity holders?

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