Question

Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)...

Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,536 Current liabilities $ 29,743 Long-term assets 46,856 Long-term debt 27,764 Other liabilities 14,341 Equity 17,544 Total $ 89,392 Total $ 89,392 Locust has 657 million shares outstanding with a market price of $95 a share.

a. Calculate the company’s 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 as the company created for its shareholders as a percent of shareholders’ equity, that is, the net capital contributed to the firm by its shareholders? (Enter your answer as a percentage rounded to the nearest whole number.)

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)...
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,539 Current liabilities $ 29,740 Long-term assets 46,862 Long-term debt 27,767 Other liabilities 14,347 Equity 17,547 Total $ 89,401 Total $ 89,401 Locust has 660 million shares outstanding with a market price of $98 a share. a. Calculate the company’s market value added. (Enter your answers in millions.) b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) c....
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions)...
Here is a simplified balance sheet for Locust Farming: Locust Farming Balance Sheet ($ in millions) Current assets $ 42,541 Current liabilities $ 29,738 Long-term assets 46,866 Long-term debt 27,769 Other liabilities 14,351 Equity 17,549 Total $ 89,407 Total $ 89,407 Locust has 662 million shares outstanding with a market price of $100 a share. a. Calculate the company’s market value added. (Enter your answers in millions.) Market Value? Market Value added? b. Calculate the market-to-book ratio. (Round your answer...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 888.00 Cost of goods sold 748.00 Depreciation 38.00 Earnings before interest and taxes (EBIT) $ 102.00 Interest expense 19.00 Income before tax $ 83.00 Taxes 17.43 Net income $ 65.57 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 376 $ 326 Long-term assets 272 229 Total assets $ 648 $ 555 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 890.00 Cost of goods sold 750.00 Depreciation 40.00 Earnings before interest and taxes (EBIT) $ 100.00 Interest expense 21.00 Income before tax $ 79.00 Taxes 16.59 Net income $ 62.41 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 378 $ 330 Long-term assets 276 231 Total assets $ 654 $ 561 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 889.00 Cost of goods sold 749.00 Depreciation 39.00 Earnings before interest and taxes (EBIT) $ 101.00 Interest expense 20.00 Income before tax $ 81.00 Taxes 17.01 Net income $ 63.99 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 377 $ 328 Long-term assets 274 230 Total assets $ 651 $ 558 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 901.00 Cost of goods sold 761.00 Depreciation 51.00 Earnings before interest and taxes (EBIT) $ 89.00 Interest expense 32.00 Income before tax $ 57.00 Taxes 11.97 Net income $ 45.03 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 389 $ 352 Long-term assets 298 242 Total assets $ 687 $ 594 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 899.00 Cost of goods sold 759.00 Depreciation 49.00 Earnings before interest and taxes (EBIT) $ 91.00 Interest expense 30.00 Income before tax $ 61.00 Taxes 21.35 Net income $ 39.65 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 387 $ 348 Long-term assets 294 240 Total assets $ 681 $ 588 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 885.00 Cost of goods sold 745.00 Depreciation 35.00 Earnings before interest and taxes (EBIT) $ 105.00 Interest expense 16.00 Income before tax $ 89.00 Taxes 31.15 Net income $ 57.85 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 373 $ 320 Long-term assets 266 226 Total assets $ 639 $ 546 Liabilities and shareholders’ equity...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales...
Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 900.00 Cost of goods sold 760.00 Depreciation 50.00 Earnings before interest and taxes (EBIT) $ 90.00 Interest expense 31.00 Income before tax $ 59.00 Taxes 12.39 Net income $ 46.61 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 388 $ 350 Long-term assets 296 241 Total assets $ 684 $ 591 Liabilities and shareholders’ equity...
Problem 4-3 Measuring Performance (LO2) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures...
Problem 4-3 Measuring Performance (LO2) Here are simplified financial statements for Watervan Corporation: INCOME STATEMENT (Figures in $ millions) Net sales $ 890.00 Cost of goods sold 750.00 Depreciation 40.00 Earnings before interest and taxes (EBIT) $ 100.00 Interest expense 21.00 Income before tax $ 79.00 Taxes 27.65 Net income $ 51.35 BALANCE SHEET (Figures in $ millions) End of Year Start of Year Assets Current assets $ 378 $ 330 Long-term assets 276 231 Total assets $ 654 $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT