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What is enterprise value?

  1. A Market capitalisation only
  2. B Market capitalisation plus net debt (and minority interest, less cash)
  3. C Total assets on the balance sheet
  4. D Shareholders' equity book value
Answer

Market capitalisation plus net debt (and minority interest, less cash)

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

All Finance MCQs

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