Question
In mid-2015, Cisco Systems had a market capitalization of $127 billion. It had A-rated debt of $20 billion as well as cash and short-term investments
In mid-2015, Cisco Systems had a market capitalization of $127 billion. It had A-rated debt of $20 billion as well as cash and short-term investments of$55 billion, and its estimated equity beta at the time was 1.26.
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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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
