medium · Investment Banking
A company has 250 million in unfunded pension obligations. How should this be treated when bridging from Equity Value to Enterprise Value?
- It should be subtracted from cash as it represents a future cash outflow.
- It should be ignored as it is a non-cash accounting liability.
- It should be added to Equity Value as a debt-like obligation.
- It should only be included if the company is in a distressed situation.
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