K 14 ss TipsTips4. Problem 4.04 (Market-Book and EV-EBITDA Ratios)eBookProblem Walk-ThroughEdelman Engines has $15 billion in total assets of which cash and equivalents total $90 milion. Its balance sheet shows $2.25 billion in curent abrities-of which the notespayable balance totals $0.98 billion. The firm also has bition in long-term debt and $6 billion in common equity. It has 500 milion shares of common stock outstanding, andits stock price is $23 per share. The firm's EBITDA totais $1.725 bilion, Assume the firm's debt is priced at par, so the market value of its debt equals its book value. What areEdelman's market/book and its EV/ERITOA raties? Do not round intermediate calculations. Round your answers to two decimal placesM/BEV/EBITDAg17

Market value = Stock price x No. of shares = $23 x 500 million = $11,500 million or $11.5 billion…

eBook Problem Walk-Through Edelman Engines has $15 billion total assets of which cash and equivalents total $90 mo ts balance sheet shows $2.25 bin in curent labes-of which the rates payable balance totals $0.98 billion. The firm also has $6.75 mmon equilty. It has 500 million shares of common stock outstanding, and n debt and $6 bon s stock price is $23 per share. The firm's EBITDA totals $1.725 bilion. Assume the firm's debt is priced at par, so the market value of its debt equals ts book value what are two decimal places Edelman's market/book and to EV/ERITOA raties? Do not round intermediate calculations Round your answers M/B EV/EBITDA

eBook Problem Walk-Through Edelman Engines has $15 billion total assets of which cash and equivalents total $90 mo ts balance sheet shows $2.25 bin in curent labes-of which the rates payable balance totals $0.98 billion. The firm also has $6.75 mmon equilty. It has 500 million shares of common stock outstanding, and n debt and $6 bon s stock price is $23 per share. The firm's EBITDA totals $1.725 bilion. Assume the firm's debt is priced at par, so the market value of its debt equals ts book value what are two decimal places Edelman's market/book and to EV/ERITOA raties? Do not round intermediate calculations Round your answers M/B EV/EBITDA

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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