Edelman Engines has $18 million in total assets. Its balance sheet shows $2 million in current liabilities, $10 million in long-term debt, and $6 million in common equity. It has 300,000 shares of common stock outstanding, and its stock price is $25.80 per share. What is Edelman's market/book (M/B) ratio? Your answer should be between 1.04 and 1.96, rounded to 2 decimal places, with no special characters.

Edelman Engines has $18 million in total assets. Its balance sheet shows $2 million in current liabilities, $10 million in long-term debt, and $6 million in common equity. It has 300,000 shares of common stock outstanding, and its stock price is $25.80 per share. What is Edelman's market/book (M/B) ratio? Your answer should be between 1.04 and 1.96, rounded to 2 decimal places, with no special characters.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Draiman Company has a debt-equity ratio of 0.75. Return on assets is 10.4 percent, and total equity is $900,000. What is the equity multiplier? Return on equity? Netincome?
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Winston Watch's stock price is $75 per share. Winston has $10 billion in total assets. Its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. It has 800 million shares of common stock outstanding. What is Winston's market/book ratio?
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Winston Watch’s stock price is $75 per share. Winston has $10 billionin total assets. Its balance sheet shows $1 billion in current liabilities,$3 billion in long-term debt, and $6 billion in common equity. It has800 million shares of common stock outstanding. What is Winston’smarket/book ratio?
CSH has EBITDA of $5 million. You feel that an appropriate enterprise value/EBITDA ratio for CSH is 9. CSH has $10 million in debt, $2 million in cash and 800 000 shares outstanding. What is your estimate of CSH’s share price?
Phelps Labs has assets of $418,000, current liabilities of $126,000, and long-term liabilities of $131,000. There is $38,700 in preferred stock outstanding; 20,000 shares of common stock have been issued. Earnings available to common shareholders are $32,300. If the firm sells at two times book value per share, what will the P/E ratio be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) P/E ratio times
A company has revenues of 24 million and depreciation and amortization expenses of 9 million. Operating margin is 42%, net margin is 7%, and gross margin is 57%. It has 19 million of debt, 6 million in cash, and 11 million shares outstanding. Comparable companies are trading at An average EV/EBITDA multiple of 12. How much are this company's shares worth using relative valuation? Round to one decimal place.
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FedEx Corporation (FDX) has a current share price of $157.56 and is expected to have earnings per share (EPS) next year of $11.04 per share. Analysts expect that FedEx's closest competitor, United Parcel Service, Inc. (UPS), will have earnings next year of $8.33 per share. FedEx's cost of capital is 11%. What is your current estimate of the value of one share of UPS stock using the method of comparables? OA. $118.88 OB. $208.82 OC. $75.73 OD. $14.27 OE. $154.85 OF. None of the above is withing $0.35 of the value of one share of UPS stock. C
Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock outstanding. If their Market Value Added (MVA) is $176 million, what is the company's stock price? Your answer should be between 27.52 and 50.98, rounded to ? dedmal places with

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