(Solution) - a General Mills Inc the large manufacturer of packaged foods -(2025 Original AI-Free Solution)

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a. General Mills, Inc., the large manufacturer of packaged foods, reported the following in its annual report for the year ending May 25, 2008 (in millions):
Short term borrowing ......... $ 442.0
Long-tern debt ........... 4,348.7
Stockholders equity ......... 6,215.8
The short-term borrowing and long-term debt are carried on the balance sheet at approximately their market value. The firm?s 337.5 million shares traded at $62 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 2,473 million shares outstanding in May 2008, trading at $47 per share. Its most recent quarterly report listed the following (in millions):
Investments in interest-bearing debt
Securities and deposits ............ $11,513
Short-term borrowings ............ 711
Long-term debt ............... 7,688
Stockholders equity .............. 38,153
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?