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What is enterprise value?

  1. A Equity value plus net debt, preferred stock and minority interest, less cash
  2. B Equity value only
  3. C Total assets
  4. D Market capitalisation plus cash
Answer

Equity value plus net debt, preferred stock and minority interest, less cash

EV represents the whole business independent of capital structure, which is why it is paired with EBITDA and EBIT.

All Investment Banking MCQs

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