In mid-2015, Cisco Systems had a market capitalization of $133 billion. It had A-rated debt of...

 

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In mid-2015, Cisco Systems had a market capitalization of $133 billion. It had A-rated debt of $27 billion as well as cash and short-term investments of $58 billion, and its estimated equity beta at the time was 1.38. 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. 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 $133 billion. It had A-rated debt of $27 billion as well as cash and short-term investments of $58 billion, and its estimated equity beta at the time was 1.38. 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. 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.)

Answer rating: 100% (QA)

a Enterprise Value can be calculated as market capitalization Debt shortterm investments Su... View the full answer