$36 per share. The firm's EBITDA totals $1.62 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 ntermediate calculations. Round your answers to two decimal places.
$36 per share. The firm's EBITDA totals $1.62 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 ntermediate calculations. Round your answers to two decimal places.
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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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Topic Video
Question
11
Transcribed Image Text:Edelman Engines has $20 billion in total assets
of which cash and
equivalents total $120 million. Its balance sheet shows $4 billion in current
liabilities
of which the notes payable balance totals $1.1 billion. The firm
also has $10 billion in long-term debt and $6 billion in common equity. It
has 300 million shares of common stock outstanding, and its stock price is
$36 per share. The firm's EBITDA totals $1.62 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
EV/EBITDA:
X
-
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