If a Target Was Purchased for $1,500

question 12

Multiple Choice

If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it used $500.0m of cash flow to repay debt?

• A)$1,000.0m
• B)$500.0m
• C)$1,500.0m
• D)$2,000.0m

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Definitions:

Molecular Formula

A notation that indicates the type and number of atoms in a molecule, but not the arrangement of the atoms.

Compound

A substance formed when two or more chemical elements are chemically bonded together.

Organic Compound

A compound primarily made of carbon atoms bonded with other elements like hydrogen, oxygen, and nitrogen.

Carbon

A chemical element with symbol C, known for its ability to form a vast number of compounds, more than any other element, due to its four valence electrons.