Company B has an equity Beta of 1.3. However, it recently

bought a company which accounts for 20% of its value

which has a beta of 1.4. This company is financed by 50%

debt and 50% equity.

You should assume that the company is profit making and

have 30% tax rate.

Given the proxy asset beta for Company B is 0.758, demonstrate how to calculate the proxy asset beta

need to show how to get 0.758