a.) Find the levered beta for this company that has three segments. The company has 800 in market value of debt, no cash, and tax rate of 36%. The company's value is the total of the values of its respective segments. Unlevered Beta SalesValue/Sales Coal Power 0.87 Wind Power Sun Power 1.36 23002 18003 1.52 1430 4 b.) If the company sells its coal power division for its value and keeps the cash what is the overall company's new levered beta after this transaction? а. a) 0.82; b) 0.64 b. a) 2.20; b) 1.95 С. a) 1.32; b) 1.05 d. a) 1.87; b) 1.43
a.) Find the levered beta for this company that has three segments. The company has 800 in market value of debt, no cash, and tax rate of 36%. The company's value is the total of the values of its respective segments. Unlevered Beta SalesValue/Sales Coal Power 0.87 Wind Power Sun Power 1.36 23002 18003 1.52 1430 4 b.) If the company sells its coal power division for its value and keeps the cash what is the overall company's new levered beta after this transaction? а. a) 0.82; b) 0.64 b. a) 2.20; b) 1.95 С. a) 1.32; b) 1.05 d. a) 1.87; b) 1.43
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:a.) Find the levered beta for this company that
has three segments. The company has 800 in
market value of debt, no cash, and tax rate of
36%. The company's value is the total of the
values of its respective segments.
Unlevered
SalesValue/Sales
Beta
Coal Power 0.87
Wind
Power
Sun Power 1.36
23002
18003
1.52
1430 4
b.) If the company sells its coal power division
for its value and keeps the cash what is the
overall company's new levered beta after this
transaction?
а.
а) 0.82;B b) 0.64
b.
а) 2.20; b) 1.95
С.
а) 1.32;B b) 1.05
d.
a) 1.87; b) 1.43
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