Hi, if a question requires us to find the value of a company, or the value attributable to a company, automatically it means the "equity value" of a company, which is the total present values of the firm minus the value of any debt borrowings?
Thank you.
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Value of company
4y ago#1No. The value of the company is the value of equity plus debt.
Oh I see. Since the equity and debt (liability) are on the credit side in the balance sheet, the corresponding debit side will be the asset. This means that the value of the company (equity + debt) is also the value of the assets combined?
Thank you.
4y ago#3Correct.
I see. Thank you.
4y ago#5You are welcome.
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