In mid-2015, Cisco Systems had a market capitalization of $124 billion. It had A-rated debt of $23 billion as well as cashand short-term investments of $60 billion, and its estimated equity beta at the time was 1.24.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.

Market capitalization = $124 billion A-rated debt = $23 billion Cash & Short term investments =…

Answered: In mid-2015, Cisco Systems had a market…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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use EXCEL and provide Cell References for Calculations.
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