Question: eBook Problem Walk-Through Edelman Engines has $18 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $2.7 billion
- eBook
Problem Walk-Through
Edelman Engines has $18 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $2.7 billion in current liabilities of which the notes payable balance totals $1.09 billion. The firm also has $8.1 billion in long-term debt and $7.2 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $46 per share. The firm's EBITDA totals $1.794 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
Get step-by-step solutions from verified subject matter experts
