Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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?

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_2

Step: 3

blur-text-image_3

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

The Oxford Handbook Of The Sociology Of Finance

Authors: Karin Knorr Cetina, Alex Preda

1st Edition

0198708777, 978-0198708773

More Books

Students also viewed these Finance questions