What was caterpillars book debt-to-value ratio what was its, Financial Management

What was caterpillars book debt-to-value ratio what was its

In 2015, Caterpillar Inc. had about 665 million shares outstanding. Their book value was $41.3 per share, and the market price was $69.50 per share. The company’s balance sheet shows that the company had $28.50 billion of long-term debt, which was currently selling near par value.

a. What was Caterpillar’s book debt-to-value ratio?

b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

c. Which measure should you use to calculate the company’s cost of capital?

A) Book value

B) Market value

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