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.