1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexxandr [17]
2 years ago
9

Edelman Engines has $18 billion in total assets — of which cash and equivalents total $120 million. Its balance sheet shows $2.7

billion in current liabilities — of which the notes payable balance totals $1.2 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.
Business
1 answer:
Levart [38]2 years ago
4 0

Answer:

Market/Book Ratio = 1.92 times

EV/EBITDA = 13.65 times

Explanation:

As for the information provided,

EBITDA = $1.794 billion

The value of common equity in books = $7.2 billion

Outstanding shares = 300 million

Share price per share = $46

Therefore, market value of common equity = $46 \times 300 million

= $13.8 billion

Therefore, market/book ratio = $13.8 billion/$7.2 billion

= 1.9167 times

EV represents enterprise value which is the market value of equity + total debt - cash and cash equivalents

= $13.8 billion + $8.1 billion + $2.7 billion - 0.120 billion

= $24.48 billion

EV/EBITDA = $24.48 billion/$1.794 billion = 13.65 times

You might be interested in
A few years ago the British government was considering​ retiring, or buying back from​ investors, some outstanding consols that
Artyom0805 [142]

Answer: d. coupon bond that pays a fixed coupon rate and does not mature.

$3250

Explanation:

A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable

Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:

= 65/2%

= $3250

8 0
2 years ago
Metlock Company has identified that the cost of a new computer will be $44000, but with the use of the new computer, net income
arlik [135]

Answer:

c

Explanation:

Cash payback period calculates how long it takes to recover the amount invested in a project from its cumulative cash flows.

Cash payback period = amount invested / cash flows

Cash flows = net income + depreciation = $5000 + $3000 = $8000

$44,000 / $8,000 = 5.5 years

8 0
2 years ago
The debt of state and local governments is mostly? owed to citizens of other nations. external. worthless internal.
topjm [15]

The debt of state and local government is mostly an external debt.

The financial obligations of the government sector are known as a nation’s gross government debt, often known as public debt or sovereign debt Government borrowing over time is mostly due to prior shortfalls in the budget. When a government’s expenses exceed its receipts, a deficit results. Both domestic and foreign residents may be subject to government debt.

Public debt management is the process of creating and implementing a strategy for managing the government's debt to raise the required amount of funding, and meet other goals of government.

Global government debt in 2020 was estimated to be worth $87.4 US trillion, The percentage of government debt in total debt (which includes corporate and family debt) reached its highest level since the 1960s, close to 40%.

To learn more about public debt , refer this link.

brainly.com/question/2902349

#SPJ4

3 0
10 months ago
Compulsory education restricts whose freedom?
valkas [14]

Answer:

 Parents

Explanation:

 Compulsory education makes sure all students (nationwide) are exposed to the basic knowledge needed to function in the real world.

6 0
3 years ago
Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration
Ierofanga [76]

Answer: Fujitsu Siemens Computers is a legally independent company of which Fujitsu and Siemens each own 50 percent. This collaboration is an example of a(n) JOINT VENTURE, which is effective at transferring KEY KNOWLEDGE.

Explanation: A joint venture is a kind of business formation which involves the coming together of two or more independent companies retaining their individual identities but functioning in some areas as one.

The companies involved in a joint venture come together to share key ideas used to improve each other and also funding.

7 0
3 years ago
Other questions:
  • What do you see as the major deficiencies current information systems budgeting and prioritization processes are run
    13·1 answer
  • Finish the sentence, gym is to healthy as book is to ?
    14·1 answer
  • One of the most talented managers to ever work at ABC Inc. is Amy Holmes. Combining graciousness intelligence and creativity. Am
    11·1 answer
  • A customer's account appears as follows:
    15·1 answer
  • What do you call a specific Market group that wants, and can afford, your product
    14·1 answer
  • Assume that on July 1, 2019, a parent company paid $1,504,800 to purchase a 75% interest in a subsidiary's voting common stock.
    8·1 answer
  • Two major variables in choosing the structure and design of an organization are the opportunities and need for ________.
    14·1 answer
  • Adam Company sells one product at a price of $50 per unit. Variable expenses are 40 percent of sales, and fixed expenses are $50
    11·1 answer
  • Pedro argued that ___ could be good. He said if the government owned factories, farms and other means of production, the economy
    5·1 answer
  • 1.All of the following are likely to be the benefits of a college graduate except:a.Earn less money overtimeb.Better job stabili
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!