Enterprise Value is equal to ________.
A) market value of equity plus debt minus current assets
B) market value of current assets plus current liabilities minus inventory
C) market value of assets plus debt minus equity
D) market value of equity plus debt minus cash

Question

Quizplus · Accepted Answer

Enterprise value is the total value of a company's equity and debt, minus the cash and cash equivalents it holds. This is because cash is considered a non-operating asset and is not essential to the company's core operations, so it is deducted from the overall value of the company when calculating its enterprise value.

Enterprise Value Is Equal to ________