Question
Edelman Engines has $17 billion in total assets of which cash and equivalents total $100 million. Its balance sheet shows $1.7 billion in current liabilitiesof
Edelman Engines has $17 billion in total assets of which cash and equivalents total $100 million. Its balance sheet shows $1.7 billion in current liabilitiesof which the notes payable balance totals $1 billion. The firm also has $10.2 billion in long-term debt and $5.1 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $20 per share. The firms EBITDA totals $1.368 billion. Assume the firms debt is priced at par, so the market value of its debt equals its book value. What are Edelmans market/book and its EV/EBITDA ratios?
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