If anyone did sample test 2011 then you should have saw this question already.
Asking to calculate Value of Equity using EV/EBITDA Multiple.
After getting EV, the answer added Cash & ST Investment and minus LT Debt only to get Value Equity.
My question is I though that to get Value of Equity from EV, we can simply subtract Value of Debt. Why do we need to added Cash & ST Inve? And why do we only minus the LT Debt?
Thanks for helping in advance.