Explain adjustments necessary to translate enterprise value, Financial Management

Assignment Help:

Explain the adjustments necessary to translate enterprise value to the total present value of common equity.

To gain the value of the company's common stock add the value of the firm's current assets to the enterprise value this produces the value of the firm's total assets.  Next, subtract the values of long-term debt, current liabilities, and preferred stock.  The outcome is the present value of common equity.

 


Related Discussions:- Explain adjustments necessary to translate enterprise value

Plugging back of the future - important source of capital, Plugging back of...

Plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business. it is an internal financial of the business and it is more suitable for

Define what effects have mergers had on fees assessed, What effects have me...

What effects have mergers had on fees assessed for retail bank services? A: The effect is not clear. Market conditions and the level of competition frequently determine the cost

Forward market evaluation, Forward market evaluation Net receipt in 1 m...

Forward market evaluation Net receipt in 1 month = 240000 - 140000 = $100000 Nedwen Co requires to sell dollars at an exchange rate of 1.7829 + 0.003 = $1.7832 per £ Ster

Compare potential liability of owners of proprietorships, Compare and contr...

Compare and contrast the potential liability of owners of proprietorships, partnerships (general partners), and corporations. The sole proprietor has infinite liability for mat

Cost of debt, Cost of Debt (k ) : This describes the rate of interest paya...

Cost of Debt (k ) : This describes the rate of interest payable on debt.  The cost of debt funds may be calculated when the debt is redeemable or irredeemable. therefore, when deb

Explain the reconstruction and effect on share price, Reconstruction and ef...

Reconstruction and effect on share price A listed company facing reconstruction (divestment, demerger, MBO etc) will have informed the stock market in advance and the share pri

Determine the factors of large organisations, Determine the factors of Larg...

Determine the factors of Large organisations -  Greater efficiency and productivity achieves economies of scale -  Easier to manage, organise and control workers through hie

Explain dividend policy decision, Q. Explain Dividend Policy Decision? ...

Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as to which portion of the profits is to be distributed as divi

Straight value (pure debt value), The straight value of a convertible...

The straight value of a convertible bond is nothing but the value of a non-convertible bond having same characteristics. For example, assume that a company has tw

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd