Your analyst is valuing an equity stake in a company. She estimates that, due to rising interest rates leading to a higher WACC, the company Enterprise Value has fallen to $100 million. She notes that the Book Debt of the company is $95 million and therefore estimates that the company's equity is only worth $5 Million. Do you agree with her? What would you ask her to do if you wanted to get a more accurate estimate of the equity value?

Answer rating: 100% (QA)

I would ask the analyst to conduct a thorough analysis of the companys financial statements and mark... View the full answer