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).
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