I need answer of this question general accounting In mid-2012, AOL Inc. had $200 million in debt, total equity capitalizationof $3.1 billion, and an equity beta of 0.97 (as reported on Yahoo! Finance).Included in AOL's assets was $1.6 billion in cash and risk-free securities.Assume that the risk-free rate of interest is 2.9% and the market riskpremium is 3.9%.a. What is AOL's enterprise value?b. What is the beta of AOL's business assets?c. What is AOL's WACC?

Given Information:Debt (D) = $200 millionEquity capitalization (E) = $3.1 billion = $3,100…

Answered: In mid-2012, AOL Inc. had $200 million…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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