In mid-2015, Cisco Systems had a market capitalization of $130 billion. It had A-rated debt of $25

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In mid-2015, Cisco Systems had a market capitalization of $130 billion. It had A-rated debt of $25 billion as well as cash and short-term investments of $60 billion, and its estimated equity beta at the time was 1.11.

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?

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Related Book For  answer-question

Corporate Finance

ISBN: 978-0134083278

4th edition

Authors: Jonathan Berk, Peter DeMarzo

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