Firm enterprise value is equal to market value

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1. A firm's enterprise value is equal to market value of its debt and equity, less the firm's holdings of cash and cash equivalents. the figure is particularly relevant to potential purchasers of the firm. Why? Please write so I can read it and understand it.

2. THIS IS ALL THE INFORMATION : You observe that Australian bonds have a yield that is 166 basis points higher than similar Government of Canada bonds. A friend of yours says that it makes no sense to buy Canadian bonds since they offer a lower yield. Discuss whether or not your friend’s claim is necessarily correct and justify your response. (Think about your response carefully. Your response should be VERY concise)

Reference no: EM131905724

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