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

question 47

Essay

Sisyphean Bolder 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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Definitions:

Labor Productivity

An indicator of economic efficiency that evaluates the quantity of goods and services generated relative to the hours of labor required to produce them.

Unemployment Rates

The share of the working population that is not employed but is in active pursuit of employment.

Improvements in Technology

Advances or upgrades in technological systems, processes, or products, leading to increased efficiency, productivity, or new capabilities.

Per-Worker Production Function

A mathematical representation of the output produced per worker, based on factors like technology and capital.