Edelman Engines has $15 billion in total assets – of which cash and the equivalent total is $80 million. Its balance sheet shows $2.25 billion in current liabilities – of which the notes payable balance totals $0.99 million. The firm also has $6.75 billion in long-term debt and 6 billion in common equity. It has 300 million shares of common stock outstanding, and its stock price is $23 per share. The firm’s EBITDA totals $0.966 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? Round your answers to two decimal places.
Based on the following information, calculate the sustainable growth rate for Kayla’s Heavy Equipment:
Profit margin | 7.30% |
Capital intensity ratio | 0.95 |
Debt-equity ratio | 1.05 |
Net income | $84,000 |
Dividends | $24,000 |