You are working at the headquarters of Maia Magnificent, which produces
mountaineering and ski equipment. Your CEO has asked you to calculate the
enterprise value and equity value per share. What is your answer?
Answer & Explanation
To calculate the enterprise value (EV) and equity value per share, we need
specific financial information about Maia Magnificent. Here's what is typically
required:
1. Enterprise Value (EV):
o Market Capitalization: The total market value of the company's
outstanding shares.
o Total Debt: The sum of short-term and long-term debt.
o Cash and Cash Equivalents: Any cash or liquid assets that can be
easily converted to cash.
The formula for EV is: