Answer: Market value of preferred stock

Enterprise value (EV) is typically calculated as the sum of market capitalization, the market value of preferred stock, and the market value of debt, minus cash and short-term investments. An increase in the market value of preferred stock directly raises EV, as it is a component of the formula. Conversely, the book value of debt (Option A) does not affect EV, as EV uses market values. The market value of investments (Option B) reduces EV when it increases, as it is subtracted in the EV calculation.

Author: LeetQuiz Editorial Team