Company a has 60 mill in equity value and 5 mill cash
company b has 5 mill equity Val 5 mil enterprise Val ( assume no debt)
If company a buys company b how are ev and eq affected
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If A uses all cash to buy B, no change to equity value, enterprise value goes up 5m
Bump
Cash down $5M, EV up $5M (from $55M to $60M).
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