Edelman Engines has $18 billion in total assets of which cash and equivalents total $90 million....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Edelman Engines has $18 billion in total assets of which cash and equivalents total $90 million. Its balance sheet shows $2.7 billion in current liabilities of which the notes payable balance totals $1.08 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 $29 per share. The firm's EBITDA totals $1.392 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: 1.38 X EV/EBITDA: 19.12 Edelman Engines has $18 billion in total assets of which cash and equivalents total $90 million. Its balance sheet shows $2.7 billion in current liabilities of which the notes payable balance totals $1.08 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 $29 per share. The firm's EBITDA totals $1.392 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: 1.38 X EV/EBITDA: 19.12
Expert Answer:
Answer rating: 100% (QA)
Question Market value Share price Number of shares outstanding 29 300 million 8700 million or ... View the full answer
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Posted Date:
Students also viewed these general management questions
-
As shown in Table 16.2, $1,000 invested at 10 percent compound interest will grow into $1,331 after three years. What is the present value of $2,662 in three years if it is discounted back to the...
-
As shown in Table 24.1, water has a very large dielectric constant K = 80.4. Why do you think water is not commonly used as a dielectric in capacitors? Table 24.1 Values of Dielectric Constant Kat...
-
Consider PepsiCos quarterly net sales as shown in Table 14.4.5. a. Draw a time-series plot for this data set. Describe any trend and seasonal behavior that you see. b. Plot the moving average values...
-
1- The z-axis carries filamentary current of 10. A. Find Hat (-3,74,0) ? p= = = 2- The Y-axis carries filamentary current of 10 A. Find H at (-3,4,1) ? p= ,= = p= , = H p= 3- The X-axis carries...
-
At the instant a ball rolls off a rooftop it has a horizontal velocity component of +10.0 m/s and a vertical component (downward) of 15.0 m/s. (a) Determine the angle of the roof. (b) What is the...
-
Which of the following describes a bond with a call feature? a. It is attractive because the immediate receipt of principal plus premium produces a high return. b. It is more likely to be called when...
-
Employer payroll taxes are deducted from the employees pay. True/False
-
Zarsons Netballs is a manufacturer of high-quality basketballs and volleyballs. Setup costs are driven by the number of batches. Equipment and maintenance costs increase with the number of...
-
Please kindly explain how to get an answer, thank you in advance! . 1. Morganton Company makes one product and it provided the following information to help prepare the master budget for its first...
-
Lolas operates a chain of sandwich shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,550,000. Expected annual net cash inflows are...
-
Gauss-seidel method Q9. Solve the system of equations of 4x-y+z=7; 4x-8y+z=-21; -2x+y+Sz=15 with
-
a. When is a change in an accounting principle made in conformity with GAAP? b. What circumstances resultin a change in an accounting principle under the consistency standard?
-
a. Is there explicit or implicit recognition of adequate informative disclosures in the auditor's report? b. What is the objective of the fourth reporting standard?
-
State the four generally accepted standards of reporting.
-
a. Identify and distinguish between two types of prospective financial information. b. What types of service may a CPA perform on such information?
-
a. What factors should an auditor consider in deciding whether financial statements are in conformity with GAAP? b. What is the GAAP hierarchy and how is it organized?
-
Can you please answer 19 and 20? Effective budgets DO NOT follow a top-down approach because: Users on the 'top' are further removed from the data, and may be unable to set realistic goals Users on...
-
A handrail, which weighs 120 N and is 1.8 m long. was mounted to a wall adjacent to a small set of steps (Figure P4.26). The support at A has broken, and the rail has fallen about the loose bolt at 8...
-
Investors became nervous just before the 2002 Brazilian presidential election. As a result, the risk premium on Brazilian government debt increased dramatically and Brazils currency depreciated...
-
Which of the following investments in the following table would be most attractive to a risk-averse investor? How would your answer differ if the investor were described as risk-neutral?...
-
If a computer game costs $30 in the United States and 26 in United Kingdom, what is the real computer game exchange rate? Look up the current dollar-pound exchange rate in a newspaper or an online...
-
Can a government unit go bankrupt? Explain.
-
Determine whether the following situations are negative indicators of the financial health of a government unit: a. Cash and investments divided by current liabilities ratio is decreasing over...
-
Do not-for-profit organizations face incentives and pressures to cook their books? Discuss.
Study smarter with the SolutionInn App