What is ciscos enterprise value

Assignment Help Finance Basics
Reference no: EM13496471

1.IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment, and must estimate its cost of capital. You find the following data for a publicly traded firm in the same line of business:

 

537_traded.jpg

What is your estimate of the project’s beta? What assumptions do you need to make?

2.In June 2009, Cisco Systems had a market capitalization of $115 billion. It had A-rated debt of $10 billion as well as cash and short-term investments of $34 billion, and its estimated equity beta at the time was 1.27.

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.

3.Consider the following airline industry data from mid-2009:

 

925_traded.jpg

a. Use the estimates in Table 12.3 to estimate the debt beta for each firm (use an average if multiple ratings are listed).

b. Estimate the asset beta for each firm.

c. What is the average asset beta for the industry, based on these firms?

Reference no: EM13496471

Questions Cloud

Estimate is the strength of the magnetic field : A metal rod 0.50 m long moves with a speed of 2.0 m/s perpendicular to a magnetic field. what is the strength of the magnetic field
Explain bonding occurs through sharing pairs of electrons : A) The transfer of electrons from one atom to another produces charges which then interact with each other. B) Bonding occurs through sharing pairs of electrons with adjacent atoms.
High-low technique to estimate the variable cost : Different costs given below, indicate whether it is a variable, fixed, or mixed cost. Use the high-low technique to estimate the variable cost per unit and the total fixed costs for each.
Obtain the inductance of the circuit : In measuring an RL circuit, you find that the total resistance of the circuit is 60 ohms and that t1/2 is 0.000836 seconds. Find the inductance of the circuit
What is ciscos enterprise value : In June 2009, Cisco Systems had a market capitalization of $115 billion. It had A-rated debt of $10 billion as well as cash and short-term investments of $34 billion, and its estimated equity beta at the time was 1.27.
How would conceptual framework help to develop standard : Critically assess the relative merits of accounting standards. In your opinion, how would a conceptual framework help to develop accounting standard?
Which of following count as single s corporation shareholder : What is Margaret's adjusted basis in her partnership interest in MP Partnership at the end of 2012?
Prepare general journal entries for these transactions : Prepare general journal entries for these transactions; post the entries, offline on separate paper, to T-accounts; and prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for..
Explain process requires initiation by a neutron : Which statement is not true about fission? Answer a. process requires initiation by a neutron b. products have smaller nuclei than reactants c. combination of atomic nuclei d. critical mass produces a chain reaction

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the percentage of amount due for each month

If the firm had $1,584,000 in credit sales over the four-month period, compute the average collection period. Avg. daily sales should be based on a 120-day period.

  Computation of irr as well as net present value

Computation of IRR as well as net present value and Look at the graph you draw and write a short paragraph stating what the graph

  Compute the contribution margin and fixed costs

Tyson Corporation bottles and distributes LO-KAL, a fruit drink. The beverage is sold for fifty cents per 16-ounce bottle to retailers, who charge customers 70 cents each bottle.

  List the preceived deficiencies of the four not selected

explain why you decided on these two and not the other four. list the preceived deficiencies of the four not selected?

  What net return did you earn on your el share

During this year, the return on the overall stock market was 11%. What net return did you earn on your El share investment? Assess this return in light of the overall market return.

  What is her portfolios beta

An individual has $30,000 invested in a stock with a beta of 0.7 and another $45,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal pla..

  How many shares of stock should the company sell

How many shares of stock should the company sell, and buy back bonds from the proceeds, to attain its optimal capital structure?

  Calculate the weighted-average cost of capital

A company current balance sheet is as follows: calculate the firm's weighted-average cost of capital at various combinations of debt and equity, given the following data?

  Explain which parties likely lobbied for the change from

the fasb in sfas no. 123 accounting for stock-based options encourages but does not require companies to recognize

  Estimate the firms decision-making procedures and describe

wren manufacturing is in the process of analyzing its investment decision-making procedures. the two projects evaluated

  This data illustrates some very interesting issues that

1.roshima is researching universities where she could study for her mba degree. she is considering 3 major attributes

  What is the degree of operating leverage at the financial

What is the degree of operating leverage at the financial break-even level of output?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd