Answer:
Market/book= 2.6428 times
EV/EBITDA= 13.37 times
Explanation:
Edelman engines have $4.2 billion in common equity
The common stock outstanding is 300 million
The share price is $37
The first step is to calculate the market value
= Common stock outstanding × share price
=300,000,000 × $37
= $11,100,000,000
Therefore the Edelman's market/book can be calculated as follows
= 11,100,000,000/4,200,000,000
= 2.6428 times
The EV can be calculated as follows
= Market value of equity + Total debt-cash and cash equivalent
= $11,100,000,000+ $7,700,000,000 + $2,100,000,000-0.120000000
= $20.78 billion
EBITDA = $1.554 billion
Therefore the EV/EBITDA can be calculated as follows
$20.78 billion/1.554 billion
= 13.37 times
