A company has $350 of secured debt, $250 of unsecured debt, $500 of equity, $180 of cash (of which $150 is excess), and $90 of EBITDA. What are EV and equity value?

Question

IBPrep · Accepted Answer

EV = Equity value + total debt - excess cash.

Total debt = $350 secured + $250 unsecured = $600.

A company has $350 of secured debt, $250 of unsecured debt, $500 of equity, $180 of cash (of which $150 is excess), and $90 of EBITDA. What are EV and equity value?

Answer

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