Equity Value and Enterprise Value Question
Hi, as I'm prepping for recruiting I have some questions regarding Enterprise Value and Equity Value.
1. If a company buys $100 of PPE in cash, does EV increase and Equity Value stay the same?
2. If a company sells $100 of PPE, does EV decrease and Equity Value stay the same?
3. If a company issues preferred stock, does Equity Value increase or is it treated like debt and stay the same?
I would love to learn the logic behind these questions and not just the answer please hahah.
I had these questions as I've seen different answers from different sources (ChatGPT, BIWS, WSO).
Id facilis dolores quia voluptas labore laborum voluptate. Sit voluptatem deserunt dolorum necessitatibus voluptas et voluptatibus. At distinctio consequatur reiciendis in deleniti eos.
Deleniti vitae non et quisquam. Hic aliquam maxime sed maxime. Rerum officia iste et.
Est ea velit natus et dicta sunt. Voluptas possimus repellat autem fuga qui ut occaecati. Voluptate perferendis molestias ut atque porro.
Eum sed ab molestias praesentium. Optio nobis non consequuntur nobis quos reiciendis blanditiis. Nulla in sed enim beatae est dolore. Quia accusantium esse et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...