Debt-like claims in enterprise value discussions typically include which items?

• A. Operating leases
• B. Pension deficits
• C. Operating leases and pension deficits
• D. Cash

Answer: (C)

Debt-like claims in enterprise value discussions are obligations that behave like debt, demanding cash outflows and affecting how much value is left for equity holders. Operating leases create fixed future lease payments, and the lease liability that arises from those contracts acts like a debt obligation the firm must satisfy over time. Pension deficits reflect commitments to fund promised retirement benefits; the underfunded status represents a real cash outflow that the company must cover, so the net pension liability is treated as debt-like. Cash, on the other hand, is an asset, not a liability, so it isn’t included as a debt-like claim. Therefore, both operating leases and pension deficits are considered debt-like when discussing enterprise value, while cash is not.