(3) You would like to create a secondary ticket market focused primarily on selling tick- ets for sporting events (60%) and you anticipate that 20% of your business will be in tickets for broadway shows and 20% will be in tickets for concerts. You have the following information about last year's revenues from some of your competitors: Revenue From Broadway E D+E Bequity Ticketmaster Livenation Stubhub Revenue Revenue From Sports From Concerts $200 M $300 M $80 M $300 M $100 M 0.60 0.80 0.50 1.8 1.7 1.5 $50 M Recall that the beta of a business with two product lines, A and B, the beta of the business is given by BA and B = BAWA + BBWB (a): What is the beta of a pure play business that sells concert tickets? (b): What is the beta of a pure play business that sells tickets to sporting events? (c): What is the beta of a pure play business that sells tickets to Broadway shows? (d): If the risk-free rate is 2% and the expected return on the market is 10%, what will be the cost of capital for the company you are planning to start? (e): If you finance the firm 50% through equity, what is the required rate of re- turn on equity and on debt