ENTERPRISE VALUE Definition

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ENTERPRISE VALUE (EV) is a measure of a companys value. Enterprise value is calculated by: market capitalization plus debt and preferred shares minus cash and cash equivalents. In effect, enterprise value is the theoretical takeover price, i.e., in the event of a buyout an acquirer would have to take on the companys debt but would pocket its cash.

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BACKLOG is value of unfilled orders placed with a manufacturing company. Whether a firms backlog is rising or falling is a clue to its future sales and earnings.

GRADUATED TAX see PROGRESSIVE TAX.

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