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Please answer all questions in each essay topic to receive full credit. Each topic can be answered in one or two paragraphs. A firms enterprise

Please answer all questions in each essay topic to receive full credit. Each topic can be answered in one or two paragraphs.

A firm’s enterprise value is equal to the market value of its debt and equity, less the firm’s holding of cash and cash equivalents. This figure is particularly relevant to potential purchases of the firm. Why?

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