Which statement regarding the enterprise method is correct?

Question 6 options:

	As the value of the debt increases, the value of the enterprise equity drops.
	Due to interest tax shield, higher tax rate increases the value of the enterprise.
	As the investment on net working capital increases, the value of the venture also increases.
	The interest expense should be considered in valuing a venture.
	Net income is preferred to operating income to calculate the enterprise value.