Total
Market Value from Equity & Debt
Total market Value of
entity may be calculated from the market value of debt and market value of
equity. Total market value is calculated by simply adding market value of Debt
& Equity.
Vt= Ve + Vd
Vt= Total Market Value
Ve= Market Value of equity
Vd= Market Value of debt
Total
Market Value from Debt & Equity Example
XYZ Company market value
of equity is 50 million, while market value of debt is 35; total market value
has been calculated for XYZ as under.
Vt=
Ve+Vd
Vd=
50+ 35
Vd=
85 (Total Market Value)
