Question
PT Industries has debt of $1,500. In Parts a) and b) assume that surplus cash is zero. Parts a), b), and c) are each
PT Industries has debt of $1,500. In Parts a) and b) assume that surplus cash is zero. Parts a), b), and c) are each worth 4 marks. Part d) is worth 3 marks. Answer the following: If the equity value is $3,250, what is the enterprise value? If the enterprise value is $5,500, what is the equity value? Assume PT Industries has $500 in surplus cash. If the equity value is $3,250 as in part a), what is the enterprise value? Assume PT Industries has $500 in surplus cash. If the enterprise value is $5,500 as in part b), what is the equity value?
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