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What was caterpillar book debt-to-value ratio

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Reference no: EM132955445

In 2018, Caterpillar Inc. had about 658 million shares outstanding. Their book value was $33.0 per share, and the market price was $159.80 per share. The company's balance sheet shows that the company had $14.80 billion of long-term debt, which was currently selling near par value.

Problem a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)

Problem 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.)

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

Reference no: EM132955445

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