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In June 2 0 0 9 , a computer company had no debt, total equity capitalization of $ 1 2 7 billion , and an

In June2009, a computer company had no debt, total equity capitalization of $ 127billion, and an equity beta of 1.78. Included in the company's assets was $ 25 billion in cash and risk-free securities. Assume that the risk-free rate of interest is 5.0% and the market risk premium is 4.0%. a. What is the company's enterprise value? b. What is the beta of the company's business assets? c. What WACC would be applicable to the company's business assets?

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