Question
FINA has three divisions: A, B, and C. The tax rate is 20%. The overall Beta, divisional Beta, asset value, and D/E ratios are given
FINA has three divisions: A, B, and C. The tax rate is 20%. The overall Beta, divisional Beta, asset value, and D/E ratios are given in the following table. What is the Beta of division C? I know the answer is 0.4649 but show the work please
| Beta | D/E | Asset Value | |
| FINA | 1.5 | 0.6 | $100 M |
| Division A | 1.8 | 0.4 | $40 M |
| Division B | 1.4 | 0.4 | $35 M |
| Division C | ? | 0.25 |
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Quantitative Finance: An Object-Oriented Approach In C++
Authors: Erik Schlogl, Dilip B. Madan
1st Edition
1584884797, 978-1584884798
