A Valuation Question - unexpected cash found at Year 0

I recently interviewed with a top M&A house and one of the interviewers asked me this question:

"There is a firm with Equity of $100 and EV of $150. If you suddenly found a $200 cash which was unknown at the time of valuation, how would be the effects of this extra cash (at Year 0) if any?"

I was not able to answer this question correctly... please help! Thanks guys!

4 Comments
 

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