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Inmid-2015, Qualcomm Inc. had $12 billion indebt, total equity capitalization of $90 billion, and an equity beta of 1.34 (as reported onYahoo! Finance). Included inQualcomm's
Inmid-2015, Qualcomm Inc. had $12 billion indebt, total equity capitalization of $90 billion, and an equity beta of 1.34 (as reported onYahoo! Finance). Included inQualcomm's assets was $22 billion in cash andrisk-free securities. Assume that therisk-free rate of interest is 2.9% and the market risk premium is 3.9%.
a. What isQualcomm's enterprisevalue?
b. What is the beta ofQualcomm's businessassets?
c. What isQualcomm's WACC?
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