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When calculating the current share price of a stock should we subtract cash in order to arrive at the firm's debt value? Ex: Firm has
When calculating the current share price of a stock should we subtract cash in order to arrive at the firm's debt value? Ex: Firm has $100 market value, $20 in debt, $10 in cash, and 10 shares outstanding. Would the current share price be: (100-20)/10= $8/share or (100-20+10)/10= $9/share.
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