In mid$-2015,$ Cisco Systems had a market capitalization of $$131$ billion. It had A$-$rated debt of $$24$ billion as well as cash and short$-$term investments of $$59$ billion, and its estimated equity beta at the time was

$1\mathrm{.}18.$

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$$ mid$-2015,$ Cisco Systems had a market capitalization of $ $131$ billion. It had$$ A$-$rated debt of $ $24$ billion as well as cash and$$ short$-$term investments of $ $59$billion$,$ and its estimated equity beta at the time was $1\mathrm{.}18.$

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.

Question content area bottom

Part $1$

a$.$ What is$$ Cisco's enterprise$$ value?

$$Cisco$\text{'}$s enterprise value is $$$

$$

enter your response here billion. $($Round to the nearest$$ integer.$)$

Part $2$

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

$$

enter your response here. $($Round to two decimal$$ places.$)$