In mid-2012, AOL Inc. had $100 million in debt, total equity capitalization of $3.2 billion, and an equity beta of 0.85 (as reported on Yahoo!…

In​ mid-2012, AOL Inc. had $100 million in​ debt, total equity capitalization of $3.2 ​billion, and an equity beta of 0.85 ​(as reported on​ Yahoo! Finance). Included in​ AOL’s assets was $1.4 billion in cash and​ risk-free securities. Assume that the​ risk-free rate of interest is 3.1% and the market risk premium is 4.1%.

a. What is​ AOL’s enterprise​ value?

b. What is the beta of​ AOL’s business​ assets?

c. What is​ AOL’s WACC?