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Equity, NAV and Shareholder Funds

D

Davee

Member
Trying to understand the relationship between these three.

NAV = total assets - total liabs and is a balance sheet term.

1. Does NAV = SH Funds?
2. Does Market value of Equity + Debt = total assets?
3. Does MV of Equity = SH Funds + goodwill?

struggling to fit these all together, particularly in relation to Mertons bond formula that equity is a call option on assets with strike price = Debt.
 
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