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What Is the Purpose of the Enterprise Value Measure

Question 11

Multiple Choice

What is the purpose of the enterprise value measure?


A) To estimate the total current market value of a firm's outstanding shares of common and preferred stock
B) To estimate the cash required to purchase all of the outstanding stock of a firm as well as pay off the firm's interest bearing debt
C) To measure the current market value of all outstanding debt
D) To measure the relationship between the current market value of a firm's equity and its book value
E) To estimate the amount of cash needed to purchase sufficient shares of stock to be elected to the firm's board of directors

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