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

Kristie, Hi I have been working in this for 2 weeks now and I just can''t s...

Hi I have been working in this for 2 weeks now and I just can''t seem to figure it out. ok lets say Bill is 40 yrs old. His made 72,000 last year had 60,000. in annual expenses,

Give subject matter of participation, Q. Give subject matter of participati...

Q. Give subject matter of participation? Subject matter of participation by and large the workers interests in participation varies with the nature of issues' involved in parti

Disadvantages of just-in-time inventory management, Q. Disadvantages of jus...

Q. Disadvantages of just-in-time inventory management? A JIT inventory management system mayn't run as smoothly in practice as theory may predict since there may be little room

Brief the term directors and managers, Directors and managers While dir...

Directors and managers While directors and managers are in concentrate attempting to promote and balance the interests of shareholders and other stakeholders it has been argued

Constructing index numbers - aggregates method, Aggregates Method Unde...

Aggregates Method Under the aggregates method of constructing an index number, we could have unweighted aggregates index and the weighted aggregates index. Unweighted Aggr

Advantage of mutual funds, Advantage of mutual funds Mutual Funds are a...

Advantage of mutual funds Mutual Funds are advantageous to individual investors in relation to their direct involvement in investment portfolio activity covering the following

Illustrate in brokered markets in trade intermediation, Illustrate the in b...

Illustrate the in brokered markets according to trade intermediation. In brokered markets: In brokered markets, brokers execute an active search function to match buyers and

What is the value of the security to an investor, What is the Value of the ...

What is the Value of the security to an investor Value of the security to an investor is directly proportional to the return that he is expected to get from that security. Hig

Convertible bonds, Basics of Convertible Bonds The provision of convers...

Basics of Convertible Bonds The provision of conversion in a corporate bond entitles the bondholder the right to convert the bond into a predetermined number of shares of commo

How does the net present value relate to value of the firm, How does the ne...

How does the net present value relate to the value of the firm? The net present value is the dollar amount of the amend to the value of the firm if the project under considerat

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