Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Edelman Engines has $18 billion in total assets- of which cash and equivalents total $100 million. Its balance sheet shows $2.6 billion in current liabilities

image text in transcribed
Edelman Engines has $18 billion in total assets- of which cash and equivalents total $100 million. Its balance sheet shows $2.6 billion in current liabilities - of which the notes payable balance totals $1.16 billion. The firm also has $8.1 billion in long-term debt and $6.3 billion in common equity. has 300 million shares of common stock outstanding, and its stock price is $34 per share. The firm's EBITDA totals $1.428 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

The Company Valuation Playbook Invest With Confidence

Authors: Charles Sunnucks

1st Edition

1838470816, 978-1838470814

Students also viewed these Finance questions