A company has $400 of secured debt, $200 of unsecured debt, $600 of equity, $250 of cash (of which $200 is excess), and $120 of EBITDA. What are EV and equity value?

Question

IBPrep · Accepted Answer

EV = Equity value + total debt - excess cash.

Total debt = $400 secured + $200 unsecured = $600.

A company has $400 of secured debt, $200 of unsecured debt, $600 of equity, $250 of cash (of which $200 is excess), and $120 of EBITDA. What are EV and equity value?

Answer

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