Question
Edelman Engines has $18 billion in total assets of which cash and equivalents total $110 million. Its balance sheet shows $2.7 billion in current liabilities
Edelman Engines has $18 billion in total assets of which cash and equivalents total $110 million. Its balance sheet shows $2.7 billion in current liabilities of which the notes payable balance totals $0.83 billion. The firm also has $9 billion in long-term debt and $6.3 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $36 per share. The firm's EBITDA totals $1.62 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
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