In mid-2015, Qualcomm Inc. had $11 billion in debt, total equity capitalization of $89 billion, and an

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In mid-2015, Qualcomm Inc. had $11 billion in debt, total equity capitalization of $89 billion, and an equity beta of 1.43 (as reported on Yahoo! Finance). Included in Qualcomm's assets was $21 billion in cash and risk-free securities. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%.
a. What is Qualcomm's enterprise value?
b. What is the beta of Qualcomm's business assets?
c. What is Qualcomm's WACC?
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Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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