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What is enterprise value?

  1. A Market capitalisation plus net debt and minority interest, less cash
  2. B Market capitalisation only
  3. C Total assets
  4. D Shareholders' equity
Answer

Market capitalisation plus net debt and minority interest, less cash

EV represents the whole business regardless of financing, which is why it is paired with pre-interest measures such as EBITDA.

All CFA MCQs

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