Question

      Which of the following is true with respect to the

    term “enterprise value” mentioned under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011? I.              Enterprise value means the value calculated as market capitalization of a company II.            Enterprise value does not include debt and minority interest III.           Enterprise value does not include cash equivalents
    A I and II Correct Answer Incorrect Answer
    B I and III Correct Answer Incorrect Answer
    C II and III Correct Answer Incorrect Answer
    D I, II and III Correct Answer Incorrect Answer
    E Only I Correct Answer Incorrect Answer

    Solution

    “enterprise value” means the value calculated as market capitalization of a company plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

    Practice Next