GE and Tyco/Market to book ratios, etc.

Related BrainMass Solutions

• Profit and Shareholder Wealth Comparison

  Market to Book ratio= Market capitalization/Book value GE= 113984.9/ 104,700.0 =1.0887 times Tyco= 11048.5071/ 15,494.0 =.713 times 2) Based on these market-to-book ratios, which company's strategy has provided greater shareholder wealth

• General Electric Corporation and Tyco International

  General Electric Market-to-book ratio = Market capitalization/Company's shareholders' equity = 360.0648 billion/0.108773 billion = 3,310.24 Tyco International Market-to-book ratio = Market capitalization/Company's shareholders'

• Task: Profit and Shareholder Wealth Comparison

  General Electric Market-to-book ratio = Market capitalization/Company's shareholders' equity = 361.81 billion/111.382 billion = 3.248 Tyco International Market-to-book ratio = Market capitalization/Company's shareholders' equity

• GE and TYCO International: Did the company achieving the greatest profit maximization also achieve the greatest stockholder wealth maximization? If not, which strategy was more beneficial to the shareholders?

  This market-to-book ratio provides one measure of shareholders wealth crated by each company. Include calculations. 5.Based on these market-to-book ratios, which company's strategy has provided the greater shareholders wealth creation?

• Investments and Wealth Creation

  No, they have not been rewarded with greater investment, as market to book ratio of Tyco is less than GE. References: 1. Financial Management by I.M. Pandey 2.

• Ratio calculation

  In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding and a market price of $36 per share. GE also had a cash of $13 billion and total debt of $370 billion.

• Normal EPS for GE based on the method of average ROE

  expect market trend to rise.

• enterprise value

  In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share. GE also had cash of $13 billion, and total debt of $370 billion. a.

• General Electric: Ratio Analysis

  It should reduce the number of products and it should realize economies of scale in the products it makes. This will enable it to increase its market share and regain its market position. GE should also spend more on research and development.