SHAREHOLDER EQUITY — VALUING YOUR COMPANY

We have now determined that the enterprise value of your company is $4,000,000. Do not misunderstand: the $4,000,000 is not all yours, because you have to go back to the definition of enterprise value. Enterprise value is the amount determined for the shareholders’ equity plus the company’s interest-bearing debt; therefore, the interest-bearing debt must be subtracted from the $4,000,000.