Question
Edelman Engines has $18 billion in total assets - of which cash and equivalents total $110 million. Its balance sheet shows $3.6 billion in current
Edelman Engines has $18 billion in total assets - of which cash and equivalents total $110 million. Its balance sheet shows $3.6 billion in current liabilities - of which the notes payable balance totals $0.97 billion. The firm also has $13.5 billion in long-term debt and $0.9 billion in common equity. It has 900 million shares of common stock outstanding, and its stock price is $43 per share. The firm's EBITDA totals $5.031 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:
X
EV/EBITDA:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started