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gladu [14]
2 years ago
8

Edelman Engines has $16 billion in total assets — of which cash and equivalents total $120 million. Its balance sheet shows $3.2

billion in current liabilities — of which the notes payable balance totals $0.84 billion. The firm also has $7.2 billion in long-term debt and $5.6 billion in common equity. It has 400 million shares of common stock outstanding, and its stock price is $27 per share. The firm's EBITDA totals $1.404 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:
liraira [26]2 years ago
7 0

Answer:

market/book ratio = 1.93

EV/EBITDA ratio = 15.01

Explanation:

market/book ratio = market price per share / book price per share

  • market price per share = $27
  • book value per share = $5,600,000,000 / 400,000,000 = $14

market/book ratio = $27 / $14 = 1.93

EV/EBITDA ratio = EV (enterprise value) / EBITDA

  • enterprise value = market value of equity + total liabilities - cash & cash equivalents = $10,800,000,000 + $10,400,000,000 - $120,000,000 = $21,080,000,000
  • EBITDA = $1,404,000,000

EV/EBITDA ratio = $21,080,000,000 / $1,404,000,000 = 15.01

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Answer: snowball sampling

Explanation:

Snowball sampling is a nonprobability sampling technique in which an initial group of respondents is selected and subsequent respondents are selected based on the referrals or information provided by the initial respondents.

It should be noted that in snowball sampling, after the respondents have been interviewed, theywould be told asked to help identify other people

that also belong to the target population.

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3 years ago
_____ encourage employees to behave in a socially responsible manner.
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There are different standards for due process in civil and criminal cases. True or False
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7 0
3 years ago
An airline is considering a project of replacement and upgrading of machinery that would improve efficiency. The new machinery c
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Answer:

$172.25

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using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:

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we can also do it manually:

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