In mid-2012 aol inc had 100 million in debt total equity


In mid-2012, AOL Inc. had $100 million in debt, total equity capitalization of $3.1 billion, and an equity beta of 0.90 (as reported 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 is 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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Corporate Finance: In mid-2012 aol inc had 100 million in debt total equity
Reference No:- TGS0789434

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