Company Beta Charles Ray plc has three main divisions: Oil & Gas, Minerals and Power & Industrial.

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Company Beta Charles Ray plc has three main divisions: Oil & Gas, Minerals and Power & Industrial. Oil &

Gas accounts for 40 per cent of the company’s assets and Minerals accounts for 35 per cent of the assets.

It has been estimated that the asset betas for these divisions are 1.2, 0.8 and 0.6, respectively. Estimate the beta of Charles Ray’s equity if the debt is risk-free.

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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Question Posted: Jul 15, 2024 10:12 AM

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Company Beta Charles Ray plc has three main divisions: Oil & Gas, Minerals and Power & Industrial.

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Corporate Finance

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