Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Edelman Engines has $13 billion in total assets of which cash and equivalents total $100 million. Its balance sheet shows $1.95 billion in current liabilities

Edelman Engines has $13 billion in total assets of which cash and equivalents total $100 million. Its balance sheet shows $1.95 billion in current liabilities of which the notes payable balance totals $0.88 billion. The firm also has $5.85 billion in long-term debt and $5.2 billion in common equity. It has 400 million shares of common stock outstanding, and its stock price is $21 per share. The firm's EBITDA totals $1.344 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

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

Handbook Of Hedge Funds

Authors: François-Serge Lhabitant

1st Edition

0470026634, 978-0470026632

More Books

Students also viewed these Finance questions