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