Computing constant debt-equity ratio, Accounting Basics

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Computing constant debt-equity ratio

uppose Caterpillar, Inc., has 665 million shares outstanding with a share price of $74.77, and $25 billion in debt. If in three years, Caterpillar has 700 million shares outstanding trading for $83 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio?

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Accounting Basics: Computing constant debt-equity ratio

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Accounting Basics: Computing constant debt-equity ratio

Reference No:- TGS0514891

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Recent Questions Asked Accounting Basics

Q : Use to develop the marketing strategy for new product

Q : Risk of the firm average project

Q : Determine average risk of the firm

Q : Cash flows used to estimate a projects npv

Q : Computing constant debt-equity ratio

Q : Problem related to after-tax cost of debt

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Ask an Expert for Answer!!

Accounting Basics: Computing constant debt-equity ratio

Reference No:- TGS0514891

Recent Questions Asked Accounting Basics

Q : Use to develop the marketing strategy for new product

Q : Risk of the firm average project

Q : Determine average risk of the firm

Q : Cash flows used to estimate a projects npv

Q : Computing constant debt-equity ratio

Q : Problem related to after-tax cost of debt

Q : Deduce the inverse demand curve for monopolist

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Q : Estimate of the firms cost of equity

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