16. Enterprise Value Ratio (LO4, CFA8) Which of the following is an advantage of the enterprise value
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16. Enterprise Value Ratio (LO4, CFA8) Which of the following is an advantage of the enterprise value ratio as compared to price ratios?
a. The EV ratio excludes interest expense.
b. The EV ratio adds the value of the firm’s cash holding.
c. The EV ratio captures the value of both firm debt and equity.
d. The EV ratio controls for the market risk premium while price ratios do not.
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Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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