Question
HP Industries has debt of $1,450. In Parts a) and b) assume that surplus cash is zero. a) If the equity value is $2,650, what
HP Industries has debt of $1,450. In Parts a) and b) assume that surplus cash is zero.
a) If the equity value is $2,650, what is the enterprise value?
b) If the enterprise value is $5,400, what is the equity value?
c) Assume PT Industries has $500 in surplus cash. If the equity value is $2,650 as in part a), what is the enterprise value?
d) Assume PT Industries has $500 in surplus cash. If the enterprise value is $5,400 as in part b), what is the equity value?
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
