What Happens to the Enterprise Value EV) If a Company

question 6

Multiple Choice

What happens to the enterprise value EV) if a company issues equity and uses the proceeds to repay debt?

• A)The EV goes up
• B)The EV remains the same
• C)The EV goes down
• D)It depends

---

Definitions:

Submucosa

Layer of tissue in the digestive tract lying just beneath the mucosa, containing blood vessels, nerves, and glands.

Serosa

Another term for serous membrane, the smooth tissue lining certain internal cavities of the body.

Chyme

The semi-fluid mass of partly digested food that moves from the stomach to the small intestine.

Enamel

The hard, protective outer layer of the tooth, made primarily of minerals and the hardest material in the human body.