Market Value of Company's Liabilities, Equity
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(b) Equity
The market value of equity is by definition equal to the number of shares outstanding times the market price per share. Find out the number of shares outstanding and the recent price per share. Then multiply one by the other in order to find the market value of equity of your company. The market value of equity of your company is what is called 'Mkt Cap' (that is, Market Capitalization) that is market capitalization.
Once you have this information, prepare a paper (in APA format) with the following:
1. Compute the debt ratio of your company (total liabilities divided by the total liabilities plus equity) and the debt to equity ratio, (total liabilities divided by total equity). Also, show these two ratios for short-term liabilities only and for long-term liabilities only (instead of total liabilities use just short-term liabilities and long-term liabilities). Show all of your work and calculations.
2. Give your recommendation as to whether or not you consider these ratios to be too small or too large. Should your SLP company increase its debt or take steps to pay off its debt?
3. Compute the debt to equity ratios to two other companies in the same industry as your SLP company. Which of these three companies has the highest debt to equity ratio, and why do you think it chose to have a relatively high ratio? Which of these three companies has the lowest debt to equity ratio, and why do you think it chose to have a relatively lower ratio?
My company is Oakley which I know was bought out by another company in 2007.
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Response provide steps to compute the Market Value of Company's Liabilities, Equity
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Oakley Balance Sheet and Market Value of Your Company's Liabilities and Equity
(b) Equity
The market value of equity is by definition equal to the number of shares outstanding times the market price per share. Find out the number of shares outstanding and the recent price per share. Then multiply one by the other in order to find the market value of equity of your company. The market value of equity of your company is what is called 'Mkt Cap' (that is, Market Capitalization) that is market capitalization.
Once you have this information, prepare a two to three page paper (in APA format) with the following:
About Oakley
As per Wikipedia, Oakley, Inc. is an eyewear company based in Foothill Ranch, California making sunglasses, sports visors and ski goggles. They also make watches, clothing, bags, backpacks, shoes, prescription glasses, football (American) and hockey eyewear, and other accessories.
On June 21, 2007, Italian group Luxottica announced a plan to merge with Oakley in a cash deal worth $2.1 billion, and the deal was completed on November 15, 2007. Oakley is now in the portfolio ...
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