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A publicly traded firm called GMA Inc has a beta of 1 . 1 and a D / E ratio of 3 0 % .
A publicly traded firm called GMA Inc has a beta of and a DE ratio of The firm has a hospitality division that accounts for of revenue and a food and beverage division that accounts for of revenue.
The table below provides data on GMAs' competitors in the food and beverages sector
Food and beverage firms pureplays Firm A Firm B
Beta
Market Capitalization millions
Total Debt millions
Based on this information, estimate the unlevered beta of GMA's hospitality division. Assume a tax rate of for all firms.
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