medium · Investment Banking implied-share-price
What happens to Equity : Value and Enterprise : Value if a company issues $200 million in new debt to repurchase $200 million of its own stock?
- Equity Value decreases by $200 million; Enterprise Value decreases by $200 million
- Equity Value stays the same; Enterprise Value increases by $200 million
- Equity Value decreases by $200 million; Enterprise Value stays the same
- Both decrease by $200 million
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