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I am having trouble solving part b of this problem... Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $31 per

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I am having trouble solving part b of this problem...

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Harrison Holdings, Inc. (HHI) is publicly traded, with a current share price of $31 per share. HHI has 25 million shares outstanding, as well as $67 million in debt. The founder of HHI, Harry Harrison, made his fortune in the fast food business. He sold off part of his fast food empire, and purchased a professional hockey team. HHl's only assets are the hockey team, together with 50% of the outstanding shares of Harry's Hotdogs restaurant chain. Harry's Hotdogs (HDG) has a market capitalization of $836 million, and an enterprise value of $1 .01 billion. After a little research, you nd that the average asset beta of other fast food restaurant chains is 0.78. You also nd that the debt of HHl and HDG is highly rated, and so you decide to estimate the beta of both rms' debt as zero. Finally, you do a regression analysis on HHl's historical stock returns in comparison to the S&P 500, and estimate an equity beta of 1.36. Given this information, estimate the beta of HHl's investment in the hockey team. HHl's asset beta is 1.25 . (Round to two decimal places.) The hotdog equity beta is |:. (Round to two decimal places.)

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