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GS, a computer manufacturer, announces that it will be acquiring FW Software. You know the following GS had a beta of 1.6 prior to the

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GS, a computer manufacturer, announces that it will be acquiring FW Software. You know the following GS had a beta of 1.6 prior to the merger. The firm has a market value of equity of $ 10000000 and $ 4000000 in debt outstanding. FW Software had a beta of 2.5 prior to the merger. The firm has a market value of equity of $ 8000000and $ 1000000 in debt outstanding. Both firms have a 40% tax rate. If you were told that GS will use 1400000 debt to acquire FW What is the unlevered beta for GS 1.142 What is the unlevered beta for FW 2.222 What is the unlevered beta for the combined firms What is the unlevered beta for the combined firms What is the beta levered for the combined firms

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