Question
To get from firm value to equity value, which of the following would you need to do? a) Subtract out the value of long term
To get from firm value to equity value, which of the following would you need to do?
a) Subtract out the value of long term debt
b) Subtract out the value of all debt
c) Subtract the value of any debt that was included in the cost of capital calculation
d) Subtract out the value of all liabilities in the firm
Doing so, will give you a value for the equity which is
a) greater than the value you would have got in an equity valuation
b) lesser than the value you would have got in an equity valuation
c) equal to the value you would have got in an equity valuation
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