If a company has an enterprise value of $1500 million, and equity value of $1200 million. Which of the followings are right? (two correct answers) the company has more debt than cash. the company has more cash then debt. the company has a net debt $300 million. the company has a debt $300 million. the company has a net debt -300 million.
If a company has an enterprise value of $1500 million, and equity value of $1200 million. Which of the followings are right? (two correct answers) the company has more debt than cash. the company has more cash then debt. the company has a net debt $300 million. the company has a debt $300 million. the company has a net debt -300 million.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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![If a company has an enterprise value of
$1500 million, and equity value of $1200
million. Which of the followings are right?
(two correct answers)
the company has more debt than cash.
the company has more cash then debt.
the company has a net debt $300 million.
the company has a debt $300 million.
the company has a net debt -300 million.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa29d6691-2fb2-4d75-8ed2-91e9043b088f%2F1e941f3d-c348-4d9c-90f4-41ec323f6aca%2Fl24rig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If a company has an enterprise value of
$1500 million, and equity value of $1200
million. Which of the followings are right?
(two correct answers)
the company has more debt than cash.
the company has more cash then debt.
the company has a net debt $300 million.
the company has a debt $300 million.
the company has a net debt -300 million.
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