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A company has a beta of 1.5 and debt/equity ratio of 50%. Its current market value of equity is 500 crores. If the company takes

A company has a beta of 1.5 and debt/equity ratio of 50%. Its current market value of equity is 500 crores. If the company takes another 50 crores of debt, what will its new beta be? Assume tax rate is 30%.

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A company has two businesses with 80% of operating profit coming from its Jewellery business and 20% coming from its Wrist-Watch business. If the unlevered beta of Jewellery business is 1.5 and that of its Wrist-Watch business is 1.1, What is the unlevered beta of the firm?

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