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johnpaech johnpaech
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Posts: 1098
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6 years ago
If on December 31, 2008 Luther has 8 million shares outstanding trading at $15 per share, then what is Luther's enterprise value?
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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wrote...
6 years ago
Enterprise value = Market value of equity + Debt - Cash
market value of equity = 8 million × $15 = $120 million
Debt = notes payable + current maturities of long-term debt + long-term debt
Debt = 9.6 + 36.9 + 168.9 = 215.4
Cash = 58.5
So, enterprise value = $120 + 215.4 - 58.5 = $276.90
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