Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Edelman Engines has $6 billion in total assets-of which cash and equivalents total $120 million. Its balance sheet shows $1.2 billion in current liabilities

image text in transcribed

Edelman Engines has $6 billion in total assets-of which cash and equivalents total $120 million. Its balance sheet shows $1.2 billion in current liabilities of which the notes payable balance totals $0.96 billion. The firm also has $4.5 billion in long-term debt and $0.3 billion in common equity. It has 400 million shares of common stock outstanding, and its stock price is $50 per share. The firm's EBITDA totals $2.8 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

Introduction To Derivatives And Risk Management

Authors: Don M. Chance, Robert Brooks

10th Edition

130510496X, 978-1305104969

More Books

Students also viewed these Finance questions