1. If a company has an enterprise value of $1,000 million and equity value of $1,150...
1. If a company has an enterprise value of $1,000 million and equity value of $1,150 million, what is the company’s net debt (total debt minus cash)? a) $250 million b) ($250) million c) $150 million d) ($150) million
Homework Answers
ENTERPRISE VALUE = EQUITY VALUE + NET DEBT
1000 = 1150 + NET DEBT
NET DEBT = 1000 - 1150
NET DEBT = ($150)
ANS d) ($150) MILLION
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