Accounting excersise- Can you please help me find the solution?

Exercise M Merck & Co., Inc. is a world leader in the discovery, development, manufacture and

marketing of a broad range of human and animal health products. The company, which has 70,000

employees, spends over USD 2 billion every year on the research and development of new drugs. As of

the end of 2, its 2.2 billion shares are valued in the stock market for a total of USD 132 billion. Given

the following data for Merck, calculate the equity ratios for 2003 and 2002. Then comment on the

results.

2003 2002

Stockholders' equity USD 14,832,400,000 USD 13,241,600,000

Total equities USD 39,910,400,000 USD 35,634,900,000

Update:

I know I must calculate the equity ratio. For some reason, I self-study, therefore need the exact answer. Thanks.

1 Answer

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  • 6 years ago
    Favorite Answer

    Calculate the percentage differential first. IE, 14.8324 INTO 132. Then transpose as a ratio.

    Your comments will be about the difference and I would hope reasons for it you should have discussed in class.

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