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    Contemporary Financial Management Study Set 1
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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 29

Question 29

Multiple Choice

How does a firm determine its enterprise value?


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

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