Only deduct debt and not net debt?

[Jones473]

I have done some of the pratice tests on the CFA website. For equity I noticed one solution where they only deducted debt to arrive at equity value, and not net debt. Hence they did not take cash into account. I believe you should use net debt. Anybody else seen this?

 

[S2000magician]

You’re deducting debt from what, exactly?
Total assets?

 

[andrevc]

That’s the same question I had.
When we look at Enterprise value, we usually take the equity value sum up the market value of debt and subtract cash. So, we take into account the NET DEBT.
Is Enterprise value different from Firm value?
So, under EV we take into account NET DEBT, and under Firm value we take into account only the market value of debt (without subtracting cash)?

 

[Jones473]

I do not remember exactly, if it was firm value or EV. It is one of the questions in the practice tests of the equity section.