medium · Investment Banking implied-share-price
In a consolidated balance sheet, why is 'Noncontrolling Interest' (NCI) added in the bridge from Equity Value to Enterprise Value?
- To account for the parent firm's share of consolidated debt
- Because NCI functions like a cash equivalent asset held on the balance sheet
- To reduce the Enterprise Value calculated for the firm in the bridge
- To match the 100% consolidation of subsidiary financials in EBITDA
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