Interview Question Explanation
Was asked how theoretically "setting cash on fire" would affect equity and enterprise value. From a logical standpoint it makes sense, but from a formulaic perspective how does burning cash not increase enterprise value since you are decreasing an amount of something that is subtracted out in the formula. Thanks!
What firm?
This was for SA 2023 so the interview took place last year but I was reviewing notes for a finance class and I remembered the question as it confused me. Was for a top EB (EVR/CVP/PJT)
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