Checkers is a firm with food and tobacco subsidiaries. The food subsidiary is estimated to be worth $$20$ billion while the tobacco subsidiary is estimated to have a value of $$30$ billion. Debt financing provides exactly half of the financing for the firm$$s total asset value of $$50$ billion $($that means that the debt$-$to$-$equity ratio equals $1).$ The following table summarizes information on comparable businesses:

Business Levered Beta Debt to Equity

Food $0\mathrm{.}925\%$

Tobacco $1\mathrm{.}250\%$

Assume that the tax rate is $40\%$ and the current risk$-$free rate is $6\%$ with a market risk premium of $5\mathrm{.}5\%.$

Question $1$ : Estimate the unlevered beta for Food business.

Question $2$ : Estimate the unlevered beta for Tobacco business.

Question $3$ : Estimate the ulevered beta for Checkers.

Question $4$ : Estimate the levered beta for Checkers.

Question $5$ : Assume now that Checkers sells the food division for its $$20$ billion value $.$ Estimiate the beta for Checkers if the cash is used to pay down debt.