Enterprise & Equity Value
A company has $500 debt, $50 preferred, $80 minority interest, $120 cash, and $40 in equity investments. Equity value is $1,000. What is enterprise value?
Model answer
EV = Equity Value + Debt + Preferred + Minority Interest - Cash - Investments = 1,000 + 500 + 50 + 80 - 120 - 40 =…
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