What is the formula to determine the Enterprise Value (EV) of a company?

The formula to determine Enterprise Value (EV) is correctly represented by adding the Equity Value to Debt and Preferred Equity, then subtracting Cash. This approach provides a comprehensive measure of a company's total value, as it takes into account not only the value of the equity but also the obligations the company has towards its debt and preferred equity holders.

Enterprise Value is a critical metric used in finance because it reflects the total value of a business, considering the financial structure of the company. By including debt, preferred equity, and subtracting cash, it encapsulates the cost of acquiring the entire firm, giving investors a clearer picture of what they would need to pay to acquire all of a company’s resources, regardless of their financing structure.

In contrast, the other options do not accurately represent the calculation for EV. For instance, merely subtracting debt from equity or cash from other financial metrics doesn't reflect the complete financial obligation of the company nor its overall valuation. Therefore, the correct answer encompasses these vital components needed to accurately assess a company's worth.