In 2015, Caterpillar Inc. had about 653 million shares outstanding. Their book value was $32.3 per share, and the market price was $74.00 per share.

In 2015, Caterpillar Inc. had about 653 million shares outstanding. Their book value was $32.3 per share, and the market price was $74.00 per share. The company’s balance sheet shows that the company had $20.20 billion of long-term debt, which was currently selling near par value.

a. What was Caterpillar’s book debt-to-value ratio? (Do not round intermediate calculations)

b. What was its market debt-to-value ratio? (Do not round intermediate calculations)

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