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A man asks you to find the systematic operating risk of adding a new beverage-making-technology to the company's line of vehicles. The has no experience
A man asks you to find the systematic operating risk of adding a new beverage-making-technology to the company's line of vehicles. The has no experience in this specific area (beverage-making-technology). You remember your finance course and look around for pure plays. You decide on WalterCola as the closest pure play. WalterCola's beta (from Yahoo!Finance) is 1.18 and that company has a D/E ratio of 0.27, and a tax rate of 0.13. What is the (numerical value of the) systematic operating risk of the project that has asked you ascertain?
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