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8. Problem 4.04 (Market-Book and EV-EBITDA Ratios) G. Edelman Engines has $16 billion in total assets - of which cash and equivalents total $120 million.

image text in transcribed 8. Problem 4.04 (Market-Book and EV-EBITDA Ratios) G. Edelman Engines has $16 billion in total assets - of which cash and equivalents total $120 million. Its balance sheet shows $2.4 billion in current liabilities - of which the notes payable balance totals $0.92 billion. The firm also has $8.8 billion in long-term debt and $4.8 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $21 per share. The firm's EBITDA totals $0.882 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

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