How do you calculate the total market value of debt? The simple formul
QUESTION
How do you calculate the total market value of debt?
The simple formula to calculate Market Value added is Market Value added = Market Value Capital Capital Invested. This value is the difference between the current market value of a company and the capital given by investors; this includes both shareholders and bondholders. If the value is higher, than the company has an added value, if it is lower, it has a lesser value. In short a MVA is the total of all
pital that is held against the company which also includes the market value of debt and equity. If the value is higher then the shareholders are definitely profited. The value added should be higher than the firms investors this could help investing in the market portfolio.
ANSWER:
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