Information relates to Questions 3 to 6 You have been asked to assist on a valuation of a local draft beer company based out of Durban. You have been provided with the following information: Company Raw Beta Beta R- squared Debt to Assets Company Tax Rate Relative Similarity Weighting Stellar 1.605 0.534 0.188 0.32 0.126 Homebrew 0.235 0.108 0.32 0.045 1.696 0.841 Artois 0.456 0.275 0.28 0.135 Heine 1.49 0.179 0.203 0.28 0.108 Kenne 0.82 0.222 0.513 0.3 0.051 Castle 1.74 0.279 0.178 0.32 0.154 Laager 1.266 0.281 0.076 0.25 0.169 Hennes 0.912 0.347 0.562 0.25 0.024 Sea 1.266 0.28 0.585 0.2 0.188 Target Company Info D/E Tax Rate 0.311 0.28 R186 0.0815 EMRP 0.056 Debt Margin 0.025 Assuming P = 0.66 and that raw betas are only adjusted if the R2 is less than 30%: 3. The unlevered beta is closest to a. 0.9381 b. 0.4648 c. 1.3867 d. 0.9732 4. The relevered beta is closest to a. 1.1482 b. 1.6972 C. 1.1911 d. 0.5688 5. WACC is closest to a. 0.1316 b. 0.1360 C. 0.1270 d. 0.1085 6. The difference between the long WACC and short (Ka) method is closest to: a. -0.0166 b. 0.0046 C. -0.0044 d. 0.0230 Information relates to Questions 3 to 6 You have been asked to assist on a valuation of a local draft beer company based out of Durban. You have been provided with the following information: Company Raw Beta Beta R- squared Debt to Assets Company Tax Rate Relative Similarity Weighting Stellar 1.605 0.534 0.188 0.32 0.126 Homebrew 0.235 0.108 0.32 0.045 1.696 0.841 Artois 0.456 0.275 0.28 0.135 Heine 1.49 0.179 0.203 0.28 0.108 Kenne 0.82 0.222 0.513 0.3 0.051 Castle 1.74 0.279 0.178 0.32 0.154 Laager 1.266 0.281 0.076 0.25 0.169 Hennes 0.912 0.347 0.562 0.25 0.024 Sea 1.266 0.28 0.585 0.2 0.188 Target Company Info D/E Tax Rate 0.311 0.28 R186 0.0815 EMRP 0.056 Debt Margin 0.025 Assuming P = 0.66 and that raw betas are only adjusted if the R2 is less than 30%: 3. The unlevered beta is closest to a. 0.9381 b. 0.4648 c. 1.3867 d. 0.9732 4. The relevered beta is closest to a. 1.1482 b. 1.6972 C. 1.1911 d. 0.5688 5. WACC is closest to a. 0.1316 b. 0.1360 C. 0.1270 d. 0.1085 6. The difference between the long WACC and short (Ka) method is closest to: a. -0.0166 b. 0.0046 C. -0.0044 d. 0.0230