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6. Answer the following briefly. a.What is the metric and its hurdle rate for an Enterprise to increase its enterprise value? b.What is the metric
6. Answer the following briefly.
a.What is the metric and its hurdle rate for an "Enterprise" to increase its enterprise value?
b.What is the metric and its hurdle rate for the corporation's equity to increase its equity value?
c.What is the hurdle rate for the company's debt, above which the corporation does not benefit from additional debt issues (increased leverage)?
d.How does leverage affect the value of a company? Positive, negative or both?
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Step: 1
a The metric used to assess the internal value of an enterprise is usually the return on invested capital ROIC This metric measures how well a company uses its capital to generate profits It is calcul...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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