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 $2.7 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 $2.7 billion in current liabilities of which the notes payable balance totals $0.95 billion. The firm also has $10.8 billion in long-term debt and $4.5 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $20 per share. The firm's EBITDA totals $0.96 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

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

Investments An Introduction

Authors: Herbert B. Mayo

12th edition

1305638417, 978-1337430937, 1337430935, 978-1305638419

More Books

Students also viewed these Finance questions