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General Mills Inc the large manufacturer of packaged foods reported the following in its annual report for the year ending May 29 2011 in millions Short term borrowing

General Mills, Inc., the large manufacturer of packaged foods, reported the following in its annual report for the year ending May 29, 2011 (in millions): Short-term borrowing ................................... $1,342.6 Long-term debt .......................................... 5,542.5 Stockholders equity ..................................... 6,616 .2 The short-term borrowing and long-term debt are carried on the balance sheet at approximately their market value. The firm s 644.8 million shares traded at $36.50 per share when the annual report was released. From these numbers, calculate General Mills s enterprise market value (the market value of the firm). b. Hewlett-Packard, the computer equipment manufacturer and systems consultant, had 2,126 million shares outstanding in May 2011, trading at $41 per share. Its most recent quarterly report listed the following (in millions): Investments in interest-bearing debt securities and deposits .................................... $12,700 Short-term borrowings ..................................... 8.406 Long-term debt ............................................. 14,512 Stockholders equity ....................................... 41,795 Calculate the enterprise market value of Hewlett-Packard. The question requires you to consider the treatment of the interest-bearing debt investments. Are they part of the enterprise?

 

May 24 2020 View more View Less

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