E1.5.

Enterprise Market Value: General Mills and Hewlett-Packard

(a) General Mills

Market value of the equity = $62 337.5 m shares = $20925m

Book value of short-term and long-term debt = 4790.7
Enterprise value 25715.7

(b)
Market value of equity = $47 2,473 m shares = $116231 m
Book value of net debt claims:
Short-term borrowing $ 711 m
Long-term debt 7688
Total debt 8399 m
Debt assets 11513 (3114)
Enterprise value 113117 m

E1.6. Identifying Operating, Investing, and Financing Transactions

(a) Financing
(b) Operations
(c) Operations; but advertising contributes to brand name.
(d) Financing
(e) Financing
(f) Operations
(g) Investing.
(h) Operations.
(i) Investing
(j) Operations