Compute enterprise value


In Mid-2012, AOL Inc. had $100 million in debt, total equity capitalization of $3.1 billion, and an equity beta of .90 (as report on Yahoo! Finance). Included in AOL's assets was 1.5 billion in cash and risk free securities. Assume that the risk free rate of interest is 3% and the market risk premium in 4%.
A - What is AOL's enterprise value?
B - What is the beta of AOL's business assets?
C - What is AOL's WACC?

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Finance Basics: Compute enterprise value
Reference No:- TGS024134

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