question archive Whan valuing a company like we did in the Anheuser Busch case, once you have solved for enterprise value, how do you calculate the price per share? You shoket tract of the market one of der and then divide by the number of share outstanding to get the price persoane You should divide by the number of share eratutanding to get the price per share You should make the market value of hebt and then hade by the number of shares outstanding to set the price per shiut
Whan valuing a company like we did in the Anheuser Busch case, once you have solved for enterprise value, how do you calculate the price per share? You shoket tract of the market one of der and then divide by the number of share outstanding to get the price persoane You should divide by the number of share eratutanding to get the price per share You should make the market value of hebt and then hade by the number of shares outstanding to set the price per shiut
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Whan valuing a company like we did in the Anheuser Busch case, once you have solved for enterprise value, how do you calculate the price per share? You shoket tract of the market one of der and then divide by the number of share outstanding to get the price persoane You should divide by the number of share eratutanding to get the price per share You should make the market value of hebt and then hade by the number of shares outstanding to set the price per shiut. You should subtract of the market value of debt to compute the price of equity per share
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The correct answer is option 1
Enterprise value is the value of whole enterpise comprising both equity and debt.
Subtract the market value of debt from enterprise value to calculate equity value and then divide by number of shares outstanding to get the price per share.
Therefore option 1 is correct and all other options are incorrect because it does not match with the explanation given above.
