Question
In mid-2015, Cisco Systems had a market capitalization of $ 137 billion. It had A-rated debt of $ 24 billion as well as cash and
In mid-2015, Cisco Systems had a market capitalization of $ 137 billion. It had A-rated debt of $ 24 billion as well as cash and short-term investments of $ 59 billion, and its estimated equity beta at the time was 1.29
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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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
17th Edition
0357714482, 9780357714485
