In December 2018, General Electric (GE) had a book value of equity of $51.2 billion, 8.6 billion shares outstanding, and a market price of $7.92 per share. GE also had cash of $71.7 billion, and total debt of $111.3 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value
In December 2018, General Electric (GE) had a book value of equity of $51.2 billion, 8.6 billion shares outstanding, and a market price of $7.92 per share. GE also had cash of $71.7 billion, and total debt of $111.3 billion. a. What was GE's market capitalization? What was GE's market-to-book ratio? b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio? c. What was GE's enterprise value
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
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In December
2018,
General Electric (GE) had a book value of equity of
$51.2
billion,
8.6
billion shares outstanding, and a market price of
$7.92
per share. GE also had cash of
$71.7
billion, and total debt of
$111.3
billion.a. What was GE's market capitalization? What was GE's market-to-book ratio?
b. What was GE's book debt-equity ratio? What was GE's market debt-equity ratio?
c. What was GE's enterprise value
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Debt and equity are main sources of finance for the company and they make the company’s capital structures. Market value of debt and equity depends on the current market price of securities.
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