Consolidation and Enterprise Value?

CFA Level I Equities
#1

Hi All,

I can’t get ahead with the following problem. I want to calculate EV for a company, and amongst others, there are two information regarding the subsidiaries:

1. The market value of the subsidiaries consolidated with equity method is 9.2bn USD.

2. The market value of third-party ownership in our 100% consolidated subsidiaries is 4.2bn USD.

So when calculating EV, do I add back the 4.2bn since it is the minority interest, right? And what about the 9.2bn, how does equity consolidation affect EV?

(Also, if management has stock options @ exercise price of 581 and the current stock price is 450, should I deduct it when calculating EV? Since it is so OTM…)

Thanks in advance!

#2

+note: If there is a line in the income statement as Minority Interest and it is -1.2mn, then which one does that relate to?