In 2013 caterpillar inc had about 652 million shares


In 2013 Caterpillar Inc. had about 652 million shares outstanding. Their book value was $31 per share, and the market price was $85.50 per share. The company’s balance sheet shows that the company had $21.7 billion of long-term debt, which was currently selling near par value. a. What was Caterpillar’s book debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.) Book value b. What was its market debt-to-value ratio? (Enter your answer as a decimal rounded to 2 decimal places. Do not round intermediate calculations.) Market value c. Which measure should you use to calculate the company’s cost of capital? Book value Market value

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Financial Management: In 2013 caterpillar inc had about 652 million shares
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