How does a firm determine its enterprise value?
A)price per share of its stock × the common shares outstanding.
B)sales × (1 + growth rate in sales)
C)EBIT × (1 - tax rate)
D)Net Income + depreciation

Question

Quizplus · Accepted Answer

Enterprise value is calculated as the market capitalization (price per share × common shares outstanding) plus debt, minority interest, and preferred shares, minus total cash and cash equivalents.

How Does a Firm Determine Its Enterprise Value