Answered

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3. How do you calculate the Net Debt of a company?

A. Gross Debt minus Interest Payment
B. Gross Debt minus Principal Payment
C. Gross Debt minus Cash
D. Gross Debt minus Bank Charges

Sagot :

GinnyAnswer

Final answer:

Net Debt of a company is calculated by subtracting Cash from Gross Debt.


Explanation:

Net Debt of a company is calculated by subtracting the company's Cash from its Gross Debt. This provides a more accurate representation of the company's financial obligations excluding the cash reserves it holds.

For example, if a company has a Gross Debt of [tex]$1,000,000 and Cash of $[/tex]200,000, the Net Debt would be [tex]$800,000 ($[/tex]1,000,000 - $200,000).


Learn more about Net Debt calculation in Business here:

https://brainly.com/question/43378786


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