Question

Score: 0 of 1 pt Question Help P 2-19 (book/static) In December 2015, General Electric (GE) had a book value of equity of $98.0 billion, 9.4 billion shares outstanding, and a market price of $31.00 por share, GE also had cash of $102.0 billion, and total debt of $199.0 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? a. What was GE's market capitalization? GE's market capitalization was $ billion (Round to one decimal place)

Answer 1

$ Book Value of equity No of shares outstanding Market price per share Total Debts Cash $ $ $ 98 billion 9.4 billion 31 199 billion 102 billion Solution a) Market Capitalization Market to Book ratio ($ 31 x 9.4 billion) ($ 291.4 / $ 98) $ $ 291.4 billion 3.0 times Solution b) Book debt - equity ratio ($ 199 / $ 98) Market debt - equity ratio ( $ 199 / $ 291.4) $ $ $ $ 2.0 times 0.7 times Solution c) Market Capitalization add: Market Value of Debts less: Cash and Equivalents GE's Enterprise Value $ 291.4 $ 199.0 $ (102.0) $ 388.4

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