Answer:
The market value added is $36,999 million
The market-to-book ratio 311.04%
The valued created as percentage of investment in equity is 211.04%
Explanation:
The company's market value added is the difference between market value of a company and amount of finance contributed by the providers of funds, both equity and debt-holders
It is denoted with below formula:
MVA=V-K
where V is the market valuation and K the book value
Since the debt market value is the same as book value, it implies that it is the same on both sides,the MVA can be taken as the difference market value of equity and book value of equity
Market value of equity=657*$83=$54531
Book value of equity$17532
MVA=$54531-$17532=$36,999
Market to book ratio=54531/17532=311.04%
The company has created for its shareholders the excess of market value of equity over book value, which $36,999 ($54531-$17532)
The value created as percentage of the investment of shareholders is
36999/17532=211.04%
