(b) Novellus Inc. is a publicly traded company that operates in three businesses with the following characteristics: Revenues Estimated Enterprise Value (Mil $) (Mil $) Unlevered Beta Storage Device 600 400 0.9 Electronics 500 600 1.2 Social Media 400 800 1.8 The firm has 100 million shares trading at $ 12/share, has no cash balance and raises the rest of its funding from debt. The marginal tax rate is 40%. i. Estimate the current levered beta for the firm. ii. Assume that Novellus is planning to sell its storage device business for the estimated value and invest half the proceeds in its social media business and use the other half to retire debt. Estimate the new beta for the firm. iii. How would you answer to ii change, if you used the proceeds entirely to buy back shares in the company? (30 Marks)