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DewDiligence

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DewDiligence

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Re: acgood post# 146854

Friday, 08/10/2012 8:31:42 AM

Friday, August 10, 2012 8:31:42 AM

Post# of 257265
Quiz answer:

PPHM can just take on 1.5b in new debt!

As mcbio noted, adding (or removing) debt would not affect the EV at all. (The whole point of employing enterprise value rather than market cap in valuation analysis is to strip out the company’s financial assets and liabilities from the actual worth of the business.)

A: The only realistic way PPHM could achieve an enterprise value of $1.5 billion is if the US Dollar experienced several years of hyperinflation.

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

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