What Amount of a Firm's Cash Should Be Included in the Enterprise

Multiple Choice

What amount of a firm's cash should be included in the enterprise value?

A) Only the amount needed to run the business
B) None of the cash should be included
C) Somewhere between 25 and 50 percent at the user's discretion
D) Only the amount necessary to maintain a constant EV/EBITDA ratio
E) The average cash balance over the past three years