Question
Edelman Engines has $16 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $3.2 billion in current liabilities
Edelman Engines has $16 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $3.2 billion in current liabilities of which the notes payable balance totals $0.91 billion. The firm also has $8.8 billion in long-term debt and $4 billion in common equity. It has 600 million shares of common stock outstanding, and its stock price is $29 per share. The firm's EBITDA totals $2.784 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?
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