Calculate implied enterprise value given the following details.

Details:
Offer price per share: $20.0
Fully diluted shares outstanding: 100
Total debt: $200.0
Cash: $100.0

Question

Quizplus · Accepted Answer

To calculate the implied enterprise value, we need to first calculate the market capitalization. 
Market capitalization = Offer price per share * Fully diluted shares outstanding 
Market capitalization = $20 * 100 = $2000

Then, we need to adjust for the total debt and cash: 
Implied enterprise value = Market capitalization + Total debt - Cash 
Implied enterprise value = $2000 + $200 - $100 
Implied enterprise value = $2100

Therefore, the best choice is C - $2100.

Calculate Implied Enterprise Value Given the Following Details