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    Contemporary Financial Management Study Set 2
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    Exam 3: Evaluation of Financial Performance
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    How Does a Firm Determine Its Enterprise Value
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How Does a Firm Determine Its Enterprise Value

Question 31

Question 31

Multiple Choice

How does a firm determine its enterprise value?


A) price per share of its stock X the common shares outstanding.
B) sales X (1 + growth rate in sales)
C) EBIT X (1 - tax rate)
D) net income + depreciation

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