Question: Enterprise Value vs Equity Value - Advantages & Disadvantages Calculating either enterprise value or equity value has both advantages and disadvantages. Which of the following
Enterprise Value vs Equity Value - Advantages & Disadvantages
Calculating either enterprise value or equity value has both advantages and disadvantages. Which of the following is a disadvantage of enterprise value?
() Minimize accounting policies relative to net income.
() There may be other debt-like and cash-like items that are difficult to measure.
() Different capital structures impact earnings, even if the businesses are otherwise identical.
()Mostly relevant to equity valuation.
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