In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $41.4...

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Accounting

In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was $41.4 per share, and the market price was $105.70 per share. The companys balance sheet shows that the company had $29.10 billion of long-term debt, which was currently selling near par value.
What was Caterpillars book debt-to-value ratio?
Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.
What was its market debt-to-value ratio?
Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.
Which measure should you use to calculate the companys cost of capital?

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