Why is the market value of currently issued debt subtracted from the enterprise value (in a debt-and-equity-only

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Why is the market value of currently issued debt subtracted from the enterprise value (in a debt-and-equity-only firm) to arrive at the value of equity? Why are future debt issues ignored in this subtraction?

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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Question Posted: Aug 13, 2012 10:18 PM

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Why is the market value of currently issued debt subtracted from the enterprise value (in a debt-and-equity-only

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The enterprise value is the value of all of the securities debt and equ...View the full answer

Entrepreneurial Finance

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