Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Edelman Engines has $ 1 8 billion in total assets - of which cash and equivalents total $ 1 0 0 million. Its balance sheet

Edelman Engines has $18 billion in total assets - of which cash and equivalents total $100 million. Its balance sheet shows $2.7
billion in current liabilities - of which the notes payable balance totals $0.99 billion. The firm also has $9 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 $40 per share. The
firm's EBITDA totals $1.8 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:
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Essentials Saving And Investing

Authors: Julia A Heath

1st Edition

1604139897, 9781604139891

More Books

Students also viewed these Finance questions