In every calculation of EV (Enterprise Value) I see, Debt enhances the Enterprise value but cash reduces it. This seems counter intuitive. Were I to buy the company, I owe the debt to another party but cash is an asset. What am I missing?
Why would the value of an enterprise be higher with more debt? Or is the debt here debt owed to the enterprise (which would be assets).
Submitted August 16, 2017 at 08:57AM by sultan489 http://ift.tt/2i4HOHP
