Question
In mid-2015, Qualcomm Inc. had $11billion in debt, total equity capitalization of $89billion, and an equity beta of 1.32 (as reported on Yahoo! Finance). Included
In mid-2015, Qualcomm Inc. had $11billion in debt, total equity capitalization of $89billion, and an equity beta of 1.32
(as reported on Yahoo! Finance). Included in Qualcomm's assets was $22 billion in cash and risk-free securities. Assume that the risk-free rate of interest is
3.1 % and the market risk premium is 4.1%.
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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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
