Enterprise value focused on:
A)market values of debt and equity.
B)book values of debt and equity.
C)market value of equity and book value of debt.
D)book value if debt and market value of equity.
E)Average value of book and market values of debt.

Question

Quizplus · Accepted Answer

Enterprise value focuses on the market values of debt and equity, rather than book values, to reflect the true value of a company. Book values may be outdated or not reflect market conditions accurately, so market values provide a more accurate assessment of a company's worth.

Enterprise Value Focused On