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4. Problem 4.04 (Market-Book and EV-EBITDA Ratios) eBook Problem Walk-Through Edelman Engines has $18 billion in total assets - of which cash and equivalents total
4. Problem 4.04 (Market-Book and EV-EBITDA Ratios) eBook Problem Walk-Through Edelman Engines has $18 billion in total assets - of which cash and equivalents total $110 million. Its balance sheet shows $3.6 billion in current liabilities of which the notes payable balance totals $1.15 billion. The firm also has $8.1 billion in long-term debt and $6.3 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $23 per share. The firm's EBITDA totals $0.966 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: 5. Problem 4.05 (Price-Earnings Ratio) eBook A company has an EPS of $2.55, a book value per share of $27.03, and a market/book ratio of 2.5x. What is its P/E ratio? Do not round intermediate calculations. Round your answer to two decimal places. 6. Problem 4.06 (DUPONT and ROE) eBook Problem Walk-Through A firm has a profit margin of 4.5% and an equity multiplier of 2.7. Its sales are $280 million, and it has total assets of $140 million. What is its ROE? Do not round intermediate calculations. Round your answer to two decimal places. %
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