IB Interview Question

Hi, I was asked the following questions and was wondering if you guys could provide me the solution and the reasoning: 

  1. If a company that has no cash, no assets, and has EV of $5bn raises $2bn of debt, and has NPV of $3bn, how would it affect the EV and Equity Value?
     
  2. If book value of property or assets is valued at $50bn, and sold for $100bn, how would it affect the 3 statements?

Any help would be greatly appreciated, thanks!

1 Comments
 

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