In mid-2015, Cisco Systems had a market capitalization of $121 billion. It had A-rated debt of $26 billion as well as cash and short-term investments of $63 billion, and its estimated equity beta at the time was 1.12. a. What is Cisco's enterprise value? b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. C a. What is Cisco's enterprise value? Cisco's enterprise value is $ billion. (Round to the nearest integer.) b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. The beta of Cisco's underlying business enterprise is (Round to two decimal places.)

In mid-2015, Cisco Systems had a market capitalization of $121 billion. It had A-rated debt of $26 billion as well as cash and short-term investments of $63 billion, and its estimated equity beta at the time was 1.12. a. What is Cisco's enterprise value? b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. C a. What is Cisco's enterprise value? Cisco's enterprise value is $ billion. (Round to the nearest integer.) b. Assuming Cisco's debt has a beta of zero, estimate the beta of Cisco's underlying business enterprise. The beta of Cisco's underlying business enterprise is (Round to two decimal places.)

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE

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