Apple Computer has a market capitalization (market value of equity) of $420 billion. The company has no debt outstanding, a cash balance of $140 billion and is in two businesses, computers and entertainment, with the computer business having a value three times that of the entertainment business. The computer business has an unlevered beta of 1.50 and the entertainment business has an unlevered beta of 1.20. a. Estimate the beta for Apples stock, given its current standing. (1 point) b. Assume that Apple is considering entering the television business. The median regression beta for companies in this business is 0.988, the median debt to equity ratio for these companies is 50% and the median cash as a percent of firm value is 5%. Estimate the unlevered beta of being in the television business. (The marginal tax rate for all firms is 40%) (1 point) c. Now assume that Apple plans to borrow $80 billion to augment their cash balance and do the following: Invest $ 70 billion on the iTV, a flat panel, high-resolution television, thus entering the television business. Pay a special dividend of $100 billion Estimate the beta of Apples equity after this transaction. (The marginal tax rate is 40%) (3 points)