Enterprise value is the market capitalisation of ordinary shares plus preferred shares and debts minus cash and cash equivalent. It is the cost to the acquirer when it buy over a company‘s ordinary shares. It is because the acquirer will assume the debts and cash will belongs to the acquirer.
Enterprise value tell acquirer the actual cost when buying the ordinary shares. That is the debts need to pay and the cash you have in the company.
When there was a judgement made in prior year without concrete evidence of support. The audit should have qualified it. When in subsequent year, the judgement is changes with the intention to correct
Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no im
When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe