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Maximizing Enterprise Value and Maximizing Shareholder Value Are Closely Linked

Question 50

Multiple Choice

Maximizing enterprise value and maximizing shareholder value are closely linked because:


A) Enterprise value and shareholder value are the same thing
B) Shareholder value is calculated by adding debt and other non-equity financial claims to the DCF value of the firm
C) Shareholder value is calculated by subtracting debt and other non-equity financial claims from the enterprise value of the firm
D) A business enterprise is owned by its shareholders.

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