In mid-2012, Cisco Systems had a market capitalization of $101 billion. It had A-rated debt of $16

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In mid-2012, Cisco Systems had a market capitalization of $101 billion. It had A-rated debt of $16 billion as well as cash and short-term investments of $48 billion, and its estimated equity beta at the time was 1.23.

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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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:00 AM

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In mid-2012, Cisco Systems had a market capitalization of $101 billion. It had A-rated debt of $16

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Corporate Finance

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