n NISM Certifications
XV NISM Series XV
Medium

A firm has a market capitalization of ₹1,00,000, total debt of ₹30,000, and cash of ₹5,000. What is the Enterprise Value (EV) of the firm?

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    ₹1,00,000

  2. B

    ₹1,35,000

  3. ₹1,25,000

    Correct answer

  4. D

    ₹65,000

Why this is the answer

Enterprise Value = Market Capitalization + Debt − Cash. EV = 1,00,000 + 30,000 − 5,000 = ₹1,25,000.

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