In 2015, Caterpillar Inc. had about 581 million shares outstanding. Their book value was $38.3 per share, and the market price was $71.00 per share. The company's balance sheet shows that the company had $26.20 billion of long-term debt, which was currently selling near par value.
a. What was Caterpillar's book debt-to-value ratio? Please show explanation for understanding
b. What was its market debt-to-value ratio? Please explain where the numbers come from.