2. Obtain the betas for each proxy company in the sample, if the CAPM is being used. These betas can be obtained from a number of services, in-

%MichaeCl . Ehrhardt and Yatin N. Bhagwat, "A Full-Information Approach for Estimating Divisional Betas,"

Financial Ma~~agemen2l0. (Summer 1991), 6049, present a hamewark for determining industry betas when betas for companies in an industry are weighted by relative sales.

Chapter 8 Creating Value through Required Returns 203 cluding Merrill Lynch, Credit Suisse-First Boston, Goldman Sachs, and Value Line Investment Survey.