Enterprise value focused on:
A) market values of debt and equity.
B) book values of debt and assets.
C) market value of equity and book value of debt.
D) book value if debt and market value of equity.
E) book values of debt and equity.

Question

Quizplus · Accepted Answer

Enterprise value is focused on the market values of debt and equity, which represent the total value of a company's operations. Book values of debt and assets, as well as book values of debt and equity, do not reflect the current market value of a company and may be outdated. The market value of equity and book value of debt may be used when calculating a company's equity value, but not when calculating enterprise value.

Enterprise Value Focused On