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 $0.92 billion. The firm aiso 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 $20 per share. The firm's EBITDA totals $0.72 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:

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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 $0.92 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 $20 per share. The firm's EBITDA totals $0.72 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:
Transcribed Image Text:eBook Problem Walk-Through 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 $0.92 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 $20 per share. The firm's EBITDA totals $0.72 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:
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