Question

Here is a simplified balance sheet for Locust Farming: Locust FarmingBalance Sheet($ in

millions)Current assets$42,542 Current liabilities$29,737 Long-term assets 46,868 Long-term debt 27,770     Other liabilities 14,353     Equity 17,550 Total$89,410 Total$89,410 

Locust has 663 million shares outstanding with a market price of $101 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 to 2 decimal places.)

Market to book ratio?

c. How much value has the company created for its shareholders as a percent of the investment of the equity holders?

Increase of value in equity?

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