A firms enterprise value is equal to the market value of its debt and equity, less the

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A firm’s enterprise value is equal to the market value of its debt and equity, less the firm’s holdings of cash and cash equivalents. This figure is particularly relevant to potential purchasers of the firm. Why?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: Apr 26, 2011 03:29 AM

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A firms enterprise value is equal to the market value of its debt and equity, less the

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Fundamentals of Corporate Finance

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