Question: In mid - 2 0 1 5 , Cisco Systems had a market capitalization of $ 1 3 9 billion. It had A - rated

In mid-2015, Cisco Systems had a market capitalization of $139 billion. It had A-rated debt of $21 billion as well as cash and short-term investments of $6 its estimated equity beta at the time was 1.32.
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 $95 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 $139 billion.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Five Business - Level Strategies What business segment or industry? Which strategy was selected? Scope Name: Class Time: Competitive Advantage Cost Uriqueness Uniqueness Integrated Cost Leadershipl...

Q:

Need help with the attached questions from finance major Assignment 3 Questions 1. Anle Corporation has a current price of $27, is expected to pay a dividend of $2 in one year, and its expected price...

Q:

Question: The work below is not the work of a tutor. I am submitting these problems for the first time. The work is my own. It is just me, the problems, and my text book. The work that I have...

Q:

In mid-2015, Cisco Systems had a market capitalization of $126 billion. It had A-rated debt of $28 billion as well as cash and short-term investments of $64 billion, and its estimated equity beta at...

Q:

In mid - 2 0 1 5 , Cisco Systems had a market capitalization of $ 1 3 1 billion. It had A - rated debt of $ 2 4 billion as well as cash and short - term investments of $ 5 9 billion, and its...

Q:

HI this is a Marketing section that is part of a business plan I just need this part put into power point for me . I have the flu and don't know to much about Power Point can someone please help me....

Q:

HI this is a Marketing section that is part of a business plan I just need this part put into power point for me . I have the flu and don't know to much about Power Point can someone please help me....

Q:

HI this is a Marketing section that is part of a business plan I just need this part put into power point for me . I have the flu and don't know to much about Power Point can someone please help me....

Q:

Please show work! 1. The following table shows the one-year return distribution of Startup, Inc. Calculate a) The expected return. b) The standard deviation of the return. 2. The last four years of...

Q:

in mid-2015, Cisco Systems had a market capitalization of $133 billion. It had A rated debt of $29 billion as well as cash and short-term investments of $66 billion, and its estimated equity beta at...

Q:

The if statement in Pascal has the syntax: if boolean_expression then statement else statement In Ada, the syntax for the if statement is: if boolean_expression then statement else statement end if...

Q:

Monty Construction Company has entered into a contract beginning January 1, 2020, to build a parking complex. It has been estimated that the complex will cost $598,000 and will take 3 years to...

Q:

Stocks in a two stock portfolio have coefficient correlation of 0 . 5 , which of the following is true? i . The weighted average total risk of the stocks is less than the total risk of the portfolio....

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

Ethics. For each of the following behaviors,explain whether it is illegal and/or unethical and what effect the behavior could have on an employee and employer. (Objectives 2, 3, 4, and 5) a. Sending...

Q:

Global. Ethics. Technology. Assume that you are a good friend of an executive of a company that markets widgets in the Bahamas. You have stock in this company, and your friend casually mentions that...

Q:

Ethics. Assume that a section of the company policy where you work conflicts with your individual value system.When a situation arises that requires application of this policy for a communication...