Question: Question 1(a): using the accounting and market information for ValueCo below, calculate the enterprise value. (12 marks) Information: $10 Share price Fully diluted share outstanding

Question 1(a): using the accounting and market information for ValueCo below,

Question 1(a): using the accounting and market information for ValueCo below, calculate the enterprise value. (12 marks) Information: $10 Share price Fully diluted share outstanding (million) 50 Total debt (million) $550 Preferred stock (million) $30 $20 Non-controlling interest (million) Cash and cash equivalent (million) $50 Question 1(b): explain why the enterprise value is so important in all the three tools of valuation. (8 marks)

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