What would be the venture equity value

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A venture has a $500,000 bank loan outstanding, a long-term debt obligation of $900,000, accounts payable of $200,000, and accounts receivable of $350,000.

A. If the venture’s equity value is $2.45 million, what would be the associated enterprise value?

B. Assume the venture’s enterprise value has been estimated to be $5.3 million (ignore any information from Part A). What would be the venture’s equity value?

C. Now assume that the venture has surplus cash of $700,000. Show how your answers would change (if at all) for Parts A and B.

Reference no: EM131124314

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