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:

Control Limits

The boundaries of acceptable variation in a process, used in statistical process control charts.

Chance Variation

The unpredictable fluctuations or differences that are observed in different samples from the same population, even under the same conditions.

Production Process

The series of steps and procedures involved in the creation of a product from raw materials.

Cycle

In various contexts, it refers to a series of events that repeat in a predictable sequence or timeframe.