A company has an enterprise value of $20mm. It has debt outstanding of $4mm. It has net income of $2mm. It has zero cash. It has 2mm shares. What is the total value of the equity?
| Enterprise value = Equity value+ MV of debt |
| 20 = Equity value+4 |
| Equity value = 16 |
| share price = equity value/number of shares |
| share price = 16/2 |
| share price = 8 |
A company has an enterprise value of $20mm. It has debt outstanding of $4mm. It has...
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