Which of the following is an advantage of the enterprise value ratio as compared to price ratios?

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a. The EV ratio excludes interest expense.

b. The EV ratio adds the value of the firm’s cash holding.

c. The EV ratio captures the value of both firm debt and equity.

d. The EV ratio controls for the market risk premium while price ratios do not.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 29, 2023 10:27 PM

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Which of the following is an advantage of the enterprise value ratio as compared to price ratios?

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Fundamentals Of Investments Valuation And Management

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