Hakuna is a publicly-traded company, owning hotels in the US and Canada. It has 80 million shares trading at $30/share and $400 million in debt outstanding. The unlevered beta of being in the hotel business is 0.6. Hakuna is subject to a 40% marginal tax rate. Estimate the levered beta for Hakuna Answer for part 1 Hakuna is considering selling its Canadian hotels (which comprise about 40% of the overall value of the firm today) and using the proceeds to do the following: 50% of the proceeds will be used to buy a fast-food restaurant chain, 25% will be used to pay a special dividend and 25% will be held to pay down debt. If the unlevered beta of the restaurant business is 1.20. Estimate the unlevered beta after restructuring. Answer for part 2 Estimate the new debt to equity ratio after restructuring. Answer for part 3 Estimate the levered beta after the restructure Answer for part 4