3. Here is some data for three firms in the restaurant industry:

Firm #1: $100 million in debt, $200 million in equity, current estimated equity beta of 3.0

Firm #2: $200 million in debt, $200 million in equity, current estimated equity beta of 3.0

Firm #3: $300 million in debt, $100 million in equity, current estimated equity beta of 4.0

There are no corporate or personal taxes

(a) For each firm, calculate b_unlevered

(b) Using your answer in part (a), what would you predict the equity beta to be for a firm in the restaurant industry with $300 million in debt and $600 million in equity?