Question: Why do we deduct net debt from enterprise value to determine equity value? N/A - this adjustment is not required in the context of Amazon.

Why do we deduct net debt from enterprise value to determine

Why do we deduct net debt from enterprise value to determine equity value? N/A - this adjustment is not required in the context of Amazon. N/A - net debt should be added in determining equity value. Equity value needs to include the pro-rata value attributable to debt holders. Enterprise value includes the value attributable to holders of both debt and equity instruments of the company

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