medium · Investment Banking valuation-core
Which of the following would lead to an increase in the Enterprise Value of a company, holding all other variables constant?
- The company issues $100 million in new debt to increase its cash balance.
- The company pays out a $50 million cash dividend to shareholders.
- The company repurchases $20 million of its own shares using excess cash.
- The company's share price increases due to a positive earnings surprise.
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