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APV question regarding debt

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Hi there,

I have 1 questions I hope someone could help me with.

If a part of a company is taken over for cash and I assume no debt was taken over but I have an EBIT to Interest coverage ratio target, do I subtract any debt during the APV calculation or would it be zero as currently I have none? (depsite using a Interest Tax Shield in the valuation)

Many thanks!!!
Romano


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