a. Calculate a military/defense asset beta. Use Lockheed Martin (LM) and Northrup Grummon (NG) as military comps. (Raytheon has too much commercial business to be a reliable comparable.) Choose a beta from the first exhibit - no right or wrong beta. I'm hoping students will pick a variety of betas so we can see the differences in WACC. Using the Hamada equation (see video about how to lever and unlever betas) to unlever LM's and NG's beta, average them - this is a military asset beta. Then find Boeing's asset beta. Boeing's beta is a weighted average of a military beta and a commercial beta (percent of revenue for Boeing's divisions are given.) Solve for Boeing's commercial asset beta