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Inmid-2015, Cisco Systems had a market capitalization of $ 125 billion. It hadA-rated debt of $ 28 billion as well as cash andshort-term investments of

Inmid-2015, Cisco Systems had a market capitalization of $ 125 billion. It hadA-rated debt of $ 28 billion as well as cash andshort-term investments of $ 61 billion, and its estimated equity beta at the time was 1.21.

a. What isCisco's enterprisevalue?

b. AssumingCisco's debt has a beta ofzero, estimate the beta ofCisco's underlying business enterprise.

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