In 1984, Textron Inc acquired Avco Corp and at the time of the acquisition, the following information was available about the two companies:

Company	Textron Inc	Avco Corp
levered bata	1.16	1.36
Market value of equity	$1.4 billion	$1.3 billion
Market value of debt	$150 million	$100 million
Cash	$43 million	$61 million
Marginal tax rate	46%	46%

1. compute the unlevered beta for each firm

2. compute the unlevered beta corrected for cash for each firm

3. using the unlevered beta corrected for cash, calculate the unlevered beta of Textron after the acqauisition

4. Textron borrowed $1.3 billion and assumed Aveo's debt. Compute the levered beta of Textron after the acquisition.