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:

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

• Calculate the unlevered asset betas for each of the three comparable firms being sure to adjust appropriately for their respective marginal tax rates

• Calculate the arithmetic industry average of the three asset betas

• Calculate the weighted average asset beta using the revenues to determine the weights

• Estimate a levered equity beta for the Greens-to-Go division for both the arithmetic and the weighted averages.