Hey Everybody, I apologize if this is in the wrong forum, but doing interview prep and ran across this question for calculating EV that I don't get. Super lost, and sorry if this is a stupid question...I got a lot to learn. I am given the share count ($10), # of shares (200M), net debt (300m), total cash (80M), accumulated depreciation (125M), and excess cash (30M). I am confused about the relationship between excess cash and total cash and how that should be calculated to get EV. Does total cash include excess cash?
Currently I have:
EV = 200*10 (mkt cap) + 300M (debt) -??
I believe I ignore depreciation, but not sure if I should subtract total cash (80M), or total cash - excess cash (50M).
Any help would be appreciated.