Question

Calculate the net debt of a firm with a market capitalization ( market value of equity) of $49 Billion


Calculate the net debt of a firm with a market capitalization ( market value of equity) of $49 Billion, market value of debt of $22 Billion, and $7 Billion in cash and equivalents. [Note: Enter your answer in Billions; for example, if you calculate the net debt to be $10 Billion, then enter just 10 in the answer box.] 

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Answer #1

Net debt is defined as what amount of debt is left if available cash and equivalents is used in paying the debt.

So Net debt = Debt - cash = 22-7 = 15

Answer : 15 (Thumbs up please)

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