Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. Problem 4.04 (Market-Book and EV-EBITDA Ratios) EB eBook Problem Walk-Through Edelman Engines has $19 billion in total assets of which cash and equivalents total
4. Problem 4.04 (Market-Book and EV-EBITDA Ratios) EB eBook Problem Walk-Through Edelman Engines has $19 billion in total assets of which cash and equivalents total $120 million. Its balance sheet shows $3.8 billion in current liabilities of which the notes payable balance totals $0.93 billion. The firm also has $9.5 billion in long- term debt and $5.7 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $22 per share. The firm's EBITDA totals $0.792 billion. Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What are Edelman's market/book and its EV/EBITDA ratios? Do not round intermediate calculations. Round your answers to two decimal places. M/B: EV/EBITDA
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started