Morgan Stanley DeckHard

Time-pressure drill: 100M shares at $50, debt $1,200M, cash $300M, preferred stock $200M, minority interest $100M. What is enterprise value?

Model answer

EV = $6,200M. Equity value = 100M x $50 = $5,000M; then EV = equity value + debt + preferred + minority interest - cash = 5,000 + 1,200 + 200 + 100 - 300 = 6,200. Recite the bridge cold in one…

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