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Hi, I would like to confirm one thing..
The total value of a firm (e.g. A Co) consists of value of equity (Ve) + value of debt (Vd). When an acquirer (e.g. B Co) wants to acquire A Co, then the value of A Co attributable to B Co is only Ve because the Vd has to be deducted, or the value of A Co attributable to B Co is still Ve + Vd?
Thank you.
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