As connoisseurs of elegant fast food cuisine, we are interested in making a bid for the Greens-to-Go restaurant division of SlurpCo, Inc. SlurpCo has three primary divisions, soft drinks, Major League football franchises, and the G to G restaurants. Given the unique risk profiles for each of these divisions, it is imperative we estimate G to G's divisional beta to determine its fit into our company. Consider the following information:

1. Calculate the unlevered asset betas for each of the three comparable firms being sure to adjust appropriately for their respective marginal tax rates
2. Calculate the arithmetic industry average of the three asset betas
3. Calculate the weighted average asset beta using the revenues to determine the weights

Company Name Debt Ratio 60% Levered Equity Beta Marginal Revenues ($ Tax Rate Mill) 0.95 40% Parent Company Greens to Go 65% ?? 40% 35% 0.75 35% 1.95 Burger Doodle Southern Fried Taco Buffet Pizza Company 45% 1.25 30% 2.85 40% 1.05 27% 0.75 Company Name Debt Ratio 60% Levered Equity Beta Marginal Revenues ($ Tax Rate Mill) 0.95 40% Parent Company Greens to Go 65% ?? 40% 35% 0.75 35% 1.95 Burger Doodle Southern Fried Taco Buffet Pizza Company 45% 1.25 30% 2.85 40% 1.05 27% 0.75