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I have problem in defining net debt thereby getting a true value of TEV. I have found and heard many definitions of net debt, these are some of them:
a) interest-bearing debt less cash & cash eq
b) LTL + short term interest bearing debt less cash & cash eq
c) Total debt less cash
d) Total debt less all liquid assets
1) What would you say is the most correct definition to give a true picture of a company’s net debt?
2) What would you include into the net debt to produce a higher margin of safety when calculating TEV? Read More