Question
These questions are about risk and capital structure Explain why, in a perfect capital market, the capital structure (the use of equity or debt) does
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These questions are about risk and capital structure
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Explain why, in a perfect capital market, the capital structure (the use of equity or debt) does not matter to the value of the firm.
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in early 2018, Qualcomm Inc. had $21 billion in debt, total equity capitalization of $78 billion, and of 1.49. Included in Qualcomms assets was $37 billion in cash and cash equivalents. Assume that the risk-free rate of interest is 3% and the market risk premium is 4%.
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What is Qualcomms enterprise value?
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What is Qualcomms WACC if they wanted to use equity only to pursue a growth strategy? Explain.
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