Edelman Engines has $18 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $1.8 billion in current liabilities of which the notes payable balance totals $1.05 billion. The firm also has $9.9 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 $26 per share. The firm's EBITDA totals $1.17 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?
Edelman Engines has $18 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $1.8 billion in current liabilities of which the notes payable balance totals $1.05 billion. The firm also has $9.9 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 $26 per share. The firm's EBITDA totals $1.17 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?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Edelman Engines has $18 billion in total assets of which cash and equivalents total $80 million. Its balance sheet shows $1.8 billion in current liabilities of which the notes payable balance totals $1.05 billion. The firm also has $9.9 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 $26 per share. The firm's EBITDA totals $1.17 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?
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