Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. edelman engines has $13 billion in total assets. i

Edelman Engines has $13 billion in total assets. Its balance sheet shows $2.6 billion in current...

Free

80.2K

Verified Solution

Question

Finance

Edelman Engines has $13 billion in total assets. Its balancesheet shows $2.6 billion in current liabilities, $9.1 billion inlong-term debt, and $1.3 billion in common equity. It has 400million shares of common stock outstanding, and its stock price is$34 per share. What is Edelman's market/book ratio? Round youranswer to two decimal places.

Answer & Explanation Solved by verified expert
4.5 Ratings (763 Votes)

Information provided:

Total assets= $13 billion

Current assets= $2.6 billion

Long term debt= $9.1 billion

Common equity= $1.3 billion

Shares outstanding= 400 million shares

Stock price= $34 per share

Book value per share = Book value of equity/ Shares outstanding

                                          = $1,300,000,000/ 400,000,000

                                          = $3.25

Market to book ratio= Market value per share/ Book value per share

                                        = $34/ $3.25

                                        = 10.46.

In case of any query, kindly comment on the solution.
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Edelman Engines has $13 billion in total assets. Its balancesheet shows $2.6 billion in current liabilities, $9.1 billion inlong-term debt, and $1.3 billion in common equity. It has 400million shares of common stock outstanding, and its stock price is$34 per share. What is Edelman's market/book ratio? Round youranswer to two decimal places.

Other questions asked by students

Q

Dec. 31 Ending inventory q:145 selling price:19Jan. 2 Purchase q:90 selling price:21Jan. 6 Sale...Dec....

Accounting
Q

Show all your work (use of formula, etc.) in solving the problems. You still need to...

Finance
Q

Was your answer well developed 3-5 Paragraphs in length. Did you answer with reflection and with...

Finance
Q

Based on the class text book- Principles of Managerial Finance by Gitman & Zutter - Chapter...

Finance
Q

in a study of 140 women, the relationship between working status (full time, part time, not...

Statistics
Q

(a) One of the first \"pure\" Bose Einstein condensates was created with a low density (1020...

Physics
Q

What is the piezoelectric effect. What is the reason? What applications are there (Maximum 90 words) please...

Mechanical Engineering
Q

Let E be an extension field of a finite field F, where F has q elements....

Advance Math
Q

The inverse of the function is the reflection of the function across the line y...

Geometry
Q

Invested Amount Interest Rate Compounding Jerry $ 12,70012% Quarterly Elaine 15,7006 Semiannually...

Accounting
Q

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility...

Accounting
Q

An investment will pay $15,900 at the end of each year for eight years and...

Accounting