E$1\mathrm{.}5.$ Enterprise Market Value: General Mills and Hewlett$-$Packard $($Medium$)$

a$.$ General Mills, Inc., the large manufacturer of packaged foods, reported the following

in its annual report for the year ending May $30,1999($in millions$)$:

The short$-$term borrowing and long$-$term debt are carried on the balance sheet at their

market value. The firm's $150\mathrm{.}0$ million shares traded at $$80$ per share when the annual

report was released. From these numbers, calculate General Mills's enterprise market

value $($the market value of the firm$).$

b$.$ Hewlett$-$Packard, the computer equipment manufacturer and systems consultant, had

$1,013$ million shares outstanding in July $1999,$ trading at $$100$ per share. Its most

recent quarterly report listed the following $($in millions$)$: Calculate the enterprise market value of Hewlett$-$Packard. The question requires you to consider the treatment of the long$-$term debt investments. Are they part of the enterprise?