(Solved): In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was \( ...

In 2020, Caterpillar Incorporated had about 540 million shares outstanding. Their book value was \( \$ 46.0 \) per share, and the market price was \( \$ 110.30 \) per share. The company's balance sheet shows that the company had \( \$ 2.67 \) billion of long-term debt, which was currently selling near par value. a. What was Caterpillar's book debt-to-value ratio? Note: Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places. b. 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. c. Which measure should you use to calculate the company's cost of capital?