12 fév. 2010 · If the equity is issued for no reason, just to increase cash for a rainy day, then there is no affect on enterprise value (EV).
Does capital structure affect enterprise value?
Enterprise value constitutes more than just outstanding equity. It theoretically reveals how much a business is worth, which is useful in comparing firms with different capital structures since the capital structure doesn't affect the value of a firm.
Does capital structure affect EV?
It's better to think about it like this: Changes to a company's capital structure tend to affect the company's Equity Value by more than they affect its Enterprise Value.
What happens to enterprise value when you raise equity?
IN THEORY, capital structure changes such as raising debt and equity will not affect Enterprise Value…