18. Chrysler, the automotive manufacturer, had a beta of 1.05 in 1995. It had $13billion in debt outstanding in that year, and 355 million shares trading at $50per share. The firm had a cash balance of $8 billion at the end of 1995. The marginal tax rate was 36%.

a. Estimate the unlevered beta of the firm.

b. Estimate the effect of paying out a special dividend of $5 billion on this un-levered beta.

c. Estimate the beta for Chrysler after the special dividend.

This is what I did and is wrong>

Data
Beta	1.05
Outstanding Debt	$ 13,000,000,000.00
Shares	$ 355,000,000.00
Price per share	$ 50.00
Cash Balance	$ 8,000,000,000.00
Tax Rate	36%
Special Dividend	$ 5,000,000,000.00
Beta of Cash	0.00
Equity	$ 17,750,000,000.00	Use the Net det 5 bill
Unlevered Beta	0.714902186
D/E -Special Dividend	1.02
Value Before Dividend	$ 30,750,000,000.00
D/E - Unlevered Beta	0.966296362	Beta cash 0 un affected
Non Cash	$ 22,750,000,000.00	Net debt will 10 billion
Difference in Cash	$ 3,000,000,000.00
Beta	$ 0.85
Chrysler New Beta	$ 1.41	?
Cash After Pay Dividends
Chrysler New Beta	1.596852105	?

Can you explain me what I made wrong. I think I need to use net debt as 5bill in part A

part B cash beta is zero so is un-affected.

Part C. my Net debt needs to be 10 billion.

Can you tell me why?

Explain step by step. please because no one of my last answers for beta is correct.