Question
1. Why is the market value of currently issued debt subtracted from the enterprise value (in a debt-and-equity-only firm) to arrive at the value of
1. Why is the market value of currently issued debt subtracted from the enterprise value (in a debt-and-equity-only firm) to arrive at the value of equity? Why are future debt issues ignored in this subtraction?
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Investments An Introduction
Authors: Herbert B Mayo
10th Edition
0538452099, 9780538452090
