Sisyphean Boulder Movers Incorporated Has No Debt,a Total Equity Capitalization

question 57

Essay

Sisyphean Boulder Movers Incorporated has no debt,a total equity capitalization of $50 billion,and a beta of 2.0.Included in Sisyphean's assets are $12 billion in cash and risk-free securities.Calculate Sisyphean's enterprise value and unlevered cost of equity considering the fact that Sisyphean's cash is risk-free.

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