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.)

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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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 $60 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 bota 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.)
Transcribed Image Text: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 $60 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 bota 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.)
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