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]
3 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]3 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 company's direction, objectives, and strategy Group of answer choices are set in stone as the end of the planning process. nev
STALIN [3.7K]

Answer:

are never final, as managing strategy is an on-going, dynamic process.

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;

I. Value.

II. Vision.

III. Mission.

Hence, a company's direction, objectives, and strategy are never final because managing strategy is a continuum or an on-going, dynamic process. Thus, it's never a now and then task.

6 0
3 years ago
Positive thinking leads towards more creative solutions because positive thinkers _______.
liberstina [14]
Are more optimistic.
8 0
3 years ago
Read 2 more answers
A firm that purchases electricity from the local utility for $200,000 per year is considering installing a steam generator at a
Sonja [21]

Answer:

-1,551,758.16

5 0
3 years ago
Below is a demand curve for DVDs for a monopoly currently producing at point
Finger [1]
The decrease is a simple 2 dollars that is easy to find out. The demand is decreasing, as is the price to keep the demand atleast a bit steady. The decrease is a 12.5% of the total cash recieved.
4 0
3 years ago
Read 2 more answers
According to Erik Erikson, in late adulthood, the individual reaches the eighth and final stage of the life span in which one re
Alex777 [14]

Answer:

integrity versus despair

Explanation:

integrity versus despair. In the integrity versus despair process, people reflect on the lives that they have been living and either have a feeling of fullness or a feeling of remorse and despair over the misperformance of their lives.

Erikson's integrity vs. Despair (1982). He is one of the few theoreticians to consider the old age as a developmental stage. This last stage of life is the conflict of dignity vs. despair. Erikson indicates that this phase commences with a mortality sensation

4 0
3 years ago
Other questions:
  • A manufacturer of luxury yachts would use which type of costing​ system?
    5·1 answer
  • John and Jen are married and decide to open three deprecate accounts for their money what is the most likely reason for this
    7·1 answer
  • Benefit of electronic banking
    9·1 answer
  • In the last several years, the Western part of the United States has faced severe drought conditions with a lack of rain in stat
    5·1 answer
  • Under the Uniform Securities Act, all of the following must be disclosed in an investment advisory contract EXCEPT A) other stat
    14·1 answer
  • Anyone want to help?
    15·1 answer
  • ____ emphasized designing and managing organization on an impersonal, rational basis through such elements as clearly defined au
    11·1 answer
  • Under a capitalistic system, decisions such as what goods and services to produce, what to charge, and how much to import or exp
    11·1 answer
  • Relevant Range and Fixed and Variable Costs Vogel Inc. manufactures memory chips for electronic toys within a relevant range of
    5·1 answer
  • Given the following production plan, use a chase production strategy to compute the monthly production, ending inventory/(backlo
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!