In early 2018, Qualcomm Inc. had ($15) billion in debt, total equity capitalization of ($88) billion, and

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In early 2018, Qualcomm Inc. had \($15\) billion in debt, total equity capitalization of \($88\) billion, and an equity beta of 1.33 (as reported on Yahoo! Finance). Included in Qualcomm’s assets was \($24\) billion in cash and risk-free securities. Assume that the risk-free rate of interest is 3.1% and the market risk premium is 3.9%.

a. What is Qualcomm’s enterprise value?

b. What is the beta of Qualcomm’s business assets?

c. What is Qualcomm’s WACC?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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