Consider the following equation: E + D = U = A The A in this equation represents: A

Finance Dec 21, 2020

Consider the following equation: E + D = U = A The A in this equation represents: A. the value of the firm's equity. O B. the value of the firm's unlevered equity. © C. the value of the firm's debt. O D. the market value of the firm's assets.

Expert Solution

Option D is correct

Assets is the sum of equity and debt

The market value of firm's assets

Equity + Debt = Assets

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