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Information regarding Kroger Company, and four industry competitors is shown below, on December 12, 2007. Company Equity beta Interest-Bearing Debt Market value equity Kroger Company

Information regarding Kroger Company, and four industry competitors is shown below, on December 12, 2007.

Company Equity beta Interest-Bearing Debt Market value equity
Kroger Company 1.05 $ 6,674.0 $ 17,690.8
Safeway Inc. 0.49 5,897.9 15,236.3
Supervalu Inc. 1.17 8,936.0 8,054.3
Whole Foods Markets 1.16 760.9 5,762.1
Winn Dixie Stores Inc. 2.56 160.1 916.8

.

A) Relever the industry asset beta to reflect Kroger's capital structure, and to make another (industry-informed) estimate of Kroger's equity beta.

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