In mid-2015, Cisco Systems had a market capitalization of $124 billion. It had A-rated debt of $29 billion as well as cash and short-term investments of S60 bilion, and its estimated equity beta at the time was 1.36. 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. a. What is Cisco's enterprise value? Cisco's enterprise value is $ bilion. (Round to the nearest integer.)

In mid-2015, Cisco Systems had a market capitalization of $124 billion. It had A-rated debt of $29 billion as well as cash and short-term investments of S60 bilion, and its estimated equity beta at the time was 1.36. 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. a. What is Cisco's enterprise value? Cisco's enterprise value is $ bilion. (Round to the nearest integer.)

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1eM

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