Book value and Enterprise Value

Is minority interest included in Book value?

Is retained earnings included in Enterprise Value?

EV is about market value.


Enterprise value is calculated as the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. RE is included in market value.

EV = market value of common stock + market value of preferred equity + market value of debt + minority interest - cash and investments.

Thank you.

Book value has retained earnings and minority interest included, but in one of the questions in the practice questions on cfai online i recall minority interest was not included on one of the questions.