Options
- A
Rs. 310 crores
-
Rs. 410 crores
Correct answer
- C
Rs. 180 crores
- D
Rs. 490 crores
Why this is the answer
The Enterprise Value (EV) of a company can be calculated using the formula EV = EBITDA × EV/EBITDA. Here, EV = 180 × 4 = Rs. 720 crores. Enterprise Value also equals the value of equity plus net debt, so 720 = Equity Value + 310. Solving for equity value, Equity Value = 720 - 310 = Rs. 410 crores. Options A, C, and D are incorrect because they do not correctly account for the net debt in the calculation of equity.
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