Hello, can someone please tell if we include short term debt in the following?
-EconomicValueAdded/EconomicProfit
-Debt to Equity ratio
-Enterprise value
-Market Value Added
From my research it seems like No, Yes, Yes, No?
EV: There is a TT about EV where they did not add commercial paper, it was extensively discussed here on AF w/o final result.
MVA: we usually have mkt. value of debt given so I’d go with that.
EVA: I do recall a question from long ago where I was not sure if we need or need not add WCInv when calculating the dollar WACC, so I’m not sure at all!!!
Debt to equity: I would add.
I thought for MVA we need both market and book value of debt? Should the book value and marketvalue include short term debt?
Ejs190.
Have you figured this out yet?