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c. (harder 7 points) Assume that Computer Inc divests itself of the Personal computer business and pays the cash out as a dividend. Estimate the

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c. (harder 7 points) Assume that Computer Inc divests itself of the Personal computer business and pays the cash out as a dividend. Estimate the beta for Computer Inc. after the divesture. Hint: you need to compute the unlevered betas for each group. To do so, you first need to find the debt assigned to each division and then find the total value of the of each group to compute. Assign the debt using the same proportions as the market value of equity of each group (for example for Mainframes this is 2/5). You can use this table to summarize your computations Division Beta Unlevered beta Value of equity Assigned debt Total value Mainframes 1.10 $2.0 billion Software 1.50 $1.0 billion Personal 1.20 $2.0 billion computers

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